£100 initial deposit. What's the best lot size?

[Bordux]

Hello. I've been learning forex for months now and I'm still sitting in my practice account. I have set my practice account to be £100 and I use 1:888 leverage at my broker (standard acc), risking 1% and using 1:2 loss/win ratio.
I'd like to hear some opinions about what would be the best lot size in my scenario.

 

[Pharaoh]

Let's simplify this.

You have £100 in your account. You want to limit the percent of your account you risk in any one trade. To further simplify, let's use EUR/GBP so that the profit/loss per pip is easier to calculate.

This leaves 2 variables needed to calculate your lot size. Your SL and your risk percentage.

If you go with 2% risk, that means you can only risk £2 per trade. On a minilot, that only gives you 2 pips (£1 per pip). Spread (or spread plus commissions) would take than out as soon as you opened the trade. You need to go smaller.

If you can work with a 20 pip SL, you need to trade microlots (£0.10 per pip). If you need a wider SL, you need to find a suitable broker that offers nanolots, consider taking larger risks, or else you need to deposit more money into your trading account.

For more details, on running these sorts of calculations, this should help:

https://www.forexpeacearmy.com/fore...2272-how-manage-risk-while-forex-trading.html

 

[Whitesnake]

For 100 pounds or $100 it would be best that you can go for anything like 1000 pips backup which would be safe for trading and making good money provided you have a good working trading strategy which gives you consistent profits. Thus, 0.01 lot size which is $0.10 per pips would be ideal.

 

[downtrend]

For 100 pounds or $100 it would be best that you can go for anything like 1000 pips backup which would be safe for trading and making good money provided you have a good working trading strategy which gives you consistent profits. Thus, 0.01 lot size which is $0.10 per pips would be ideal.

Yes 10cents per pip is a good return per pip if you have a good trading system. Using 1 : 2 for risk/reward will bring you good profit. The rest depends on your pair that you are trading and time frame, because 10cents per pip with 100 pips as SL would make 10% of your $100 account.

 

[dkami]

Hello. I've been learning forex for months now and I'm still sitting in my practice account. I have set my practice account to be £100 and I use 1:888 leverage at my broker (standard acc), risking 1% and using 1:2 loss/win ratio.
I'd like to hear some opinions about what would be the best lot size in my scenario.

Well why don't you test the lowest lot size possible on a 100 pound demo account and see if it's even worth your time?

Do the math's even if you could accomplish 25% a year (which I highly dough) you would be working for less than 7cents a day

 

[RahmanSL]

Well why don't you test the lowest lot size possible on a 100 pound demo account and see if it's even worth your time?

Do the math's even if you could accomplish 25% a year (which I highly dough) you would be working for less than 7cents a day

That's the most sensible and logical thing to do

 

[FxTrickster]

May I ask which brokers even offer lots that small? And do they even accept such low initial deposits?

 

[AsstModerator]

May I ask which brokers even offer lots that small? And do they even accept such low initial deposits?

Spam Cat checks General Forex Talk frequently. It would be safer to start a thread in Company Comparisons to ask about brokers offering smaller lot sizes.

 

[iMusingKiMi]

Well why don't you test the lowest lot size possible on a 100 pound demo account and see if it's even worth your time?

Do the math's even if you could accomplish 25% a year (which I highly dough) you would be working for less than 7cents a day

I love this one, sensible mindset. What's the point to trade with such low deposit? No matter in point of trading or investing. Therefore, I always curious why someone will think that maybe USD 1k could get them rich very fast in Forex. If you think that the system haven't ready for live, just go for demo. Once it is ready, test it with USD 500 or USD 1k. It is investment, you still need some capital for a new business even thought it is a trial run.

 

[Pharaoh]

There's no harm in starting very small. This helps get a trader over the "it's REAL money!!!" psychological hurdle. Once the trader settles in and is making profits in a safe way, then it's time to slowly scale up the account.