What's the smallest useful trading account?
Every broker has a minimum deposit, but the useful minimum is higher: enough that 1% risk per trade is still a tradeable position size with a sensible stop distance.
Work the numbers with us:
- your account size
- your risk per trade in money
- whether micro lots make it possible
The position sizing guide and the lot sizes guide have the arithmetic.
Background: Position sizing: how to risk a fixed percentage per trade
How much you trade matters more than where you enter. A step-by-step method for sizing positions from your stop-loss and the amount you are willing to lose.
How do I calculate lot size from risk?
Divide the amount you are willing to lose by the stop distance in pips multiplied by the pip value per lot. For $50 risk, a 25-pip stop and $10 per pip per lot, that is 0.20 lots.
What is the 1% rule in trading?
A guideline to risk no more than 1% of the account on any single trade, so a losing streak doesn't cause a drawdown you can't recover from. It is a starting point, not a guarantee.
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