Understanding FX accounts, lots & pips at 100:1 leverage?

[danielsan]

Hello to all,

I am a newbie to trading, I have had some confusion as to how specific fx accounts and their lot sizes and cost per pip at 100:1 leverage is understood?

See my understanding below, am I close?

Std Account- 1 std lot =$1000 cost per pip $10 Leverage 100:1 ($10 x 100 = $1000) $1000 controls $100,000

Mini Account- 1 mini lot =$100 cost per pip $1 Leverage 100:1 ($1 x 100 = $100) $100 controls $10,000

Micro Account- 1 micro lot =$10 cost per pip $0.10 Leverage 100:1 ($0.10 x 100 = $10) $10 controls $1,000

Nano Account- 1 nano lot =$1 cost per pip $0.01 Leverage 100:1 ($0.01 x 100 = $1) $1 controls $100


I appreciate anyone's help/comments

 

[Boggo]

Try this
http://www.forex-training.com/pip.htm

 

[danielsan]

Thanks Boggo, I will check it out.

 

[pma99]

I appreciate anyone's help/comments

Also worth a look...

http://www.babypips.com/school/

Paul

 

[danielsan]

Hi Boggo,

Thanks again for the link on How to Calculate Pip Values, I checked it out and saved it for future reference as well.

I recently opened a demo account and I rang the broker and quizzed him about my question, he said my examples made sense.

Hi Paul,

Yeah Babypips is a cool site, I am working my way through the School of Pipsology at the moment. I have also been following the ongoing Cowabunga trade system blog that they do there.

I am currently reading a book from Aussie, Brent Penfold, called The Universal Principles of Successful Trading, its awesome! well worth a read, I am happy to be gaining the knowledge of money/risk management prior to putting my hard earned on the line

Cheers,
danielsan

 

[Boggo]

 

[danielsan]

I recently came across this similar thread,

https://www.aussiestockforums.com/forums/showthread.php?t=11793&

I thought it may be useful to other newbie's, in particular Tayser's example post and the book that he recommends. I will be off to the book store later this week, let me know if you would like a review of the book, once I have read it of course

 

[danielsan]

I recently came across this similar thread,

https://www.aussiestockforums.com/forums/showthread.php?t=11793&

I thought it may be useful to other newbie's, in particular Tayser's example post and the book that he recommends. I will be off to the book store later this week, let me know if you would like a review of the book, once I have read it of course

I just realised that the book that is recommended by Tayser is available from the ASF online shop, so I will buy it from there and support this great site

 

[Market Depth]

Easyforex, has a very basic free simulator, that lets you practice or just watch and learn, sometimes just watching something trade for quite a while, can give you a feel for price movement. But don't forget a rock solid trading plan, before you put up your hard earned.

http://en.easy-forex.com/evo/au/tradesimulator.aspx

 

[danielsan]

Easyforex, has a very basic free simulator, that lets you practice or just watch and learn, sometimes just watching something trade for quite a while, can give you a feel for price movement. But don't forget a rock solid trading plan, before you put up your hard earned.

http://en.easy-forex.com/evo/au/tradesimulator.aspx

Hi Market Depth,

I will checkout the link and give it a go, thanks.