Discussions about Money Management and Risk Control.
jennyforex
Contributor
Posts: 1
Joined: Fri Jan 14, 2005 3:34 am

As a novice, I've been well travelled among many materials seeking answers for the implementing Turtler's rules in Forex. Quit a difficult trip. Fortunitly, I find this forum! Could anybody kindly help me in the following problems?
1. Dollars per point

To caculate dollars per point, you need to set quantity of unit first. For example:
10,000 units EURUSD makes 1pip=\$1
If it's 20,000, 1pip=\$2

Shoul I always use 10,000 units to caculate the dollars per point?

2. My account is \$10,000, ATR=85, 1pip=\$1.
Position Size = (1%*\$10,000)/(85*\$1)= 1.1765
So, I can trade 1 contract. My broker don's use lot or contract, but allows whatever unit you desire to trade. So, if I translate the contract to units, 1 contract=\$10,000, or 1 contract=\$100,000?

3. If 1 contract=\$10,000, I trade a leverage of 50,
First position = 11765*50 = \$58,8250
My account is \$10,000, it is \$500,000 after leverage. The first position is already bigger than my leveraged account.
Is the "contract" already leveraged? How can I apply the fomular correctly according to my own leverage?

bazzacontango
Contributing Member
Posts: 7
Joined: Sun Dec 19, 2004 7:41 pm
Since no one else has replied:
Which size account, are you trading:- a standard 100000 lot size account has a nominal USD10 a pip, while a mini-account is 10000 and nominal USD1 a pip.

1. Well assuming you're trading a mini margin forex account. Each lot is equivalent to 10000 of the base currency.
Where the currency pair is quoted as xxxUSD, then a 1 pip move is 1USD. as in EURUSD.