Earlier operate seems simple even in Meta Trader just press and choose to sell or buy and presto, you jumped into the market! But while creating a capital management plan can be something very personal, calculate the position size of your trades is not.

In fact, with some parameters as a base, doing this it is something simple and practical and should be done every time you plan to open a position. In this article you will learn how to do these calculations before making your trades in the Forex and will understand how this can help keep safe your Forex trading account.

Determine Your Risk For Trade

As you risk in each transaction is paramount item in its capital management plan. Accounts with higher values end up using smaller percentage - as 2%. smaller bills tend to take more risks to try to increase with higher speed operation of capital - it is normal to see people risking about 10%.

Regardless of the type of trader you are - more conservative or more daring - you never, never, never, NEVER should do is to determine an operation without it. And it really depends on how much money you have and what your personality as operator.

For our example, let's say the operating account that we have $ 5,000 and want to risk no more than 5% of this amount for trade. It's not negligible, say by the way ($ 250 per trade), and why it is so important to stick to your plan and control their possible losses.

Forex Account Type Matter?

Not long ago, most brokers required you to determine the type of account and were generally divided into micro, mini, standard ... this basically over. Before this classification determined the value of the standard lot you operated and that was something a little confused and without much chance to adapt.

Currently, most brokers do not divide anymore because it allows you to operate the lot on the size you want, simply by their capital can withstand the pip value. Soon, she does not care if you open a position with 20 lots or 00:25 since you understand that the risk is all yours.

Calculating Positions in Forex Manually

Skip this session because they do not teach you that. My goal is to simplify your life and streamline your trading, so I see no reason to do something more difficult and more error. Let's cut through and get to the point!

Using Online Calculators Forex Position Size

By far your best option! Of course, you can also use an indicator or expert advisor meta trader to help you, but not always your program will be the trader goal or it will be at hand on the computer that is operating.