General Topics
Technical Topics
Brokerage Firms
Community Lounge
Site Support

# My friend pays \$1000 commission per round trip on USD/JPY, what his implied PA

If someone were to pay around \$1000 in commissions to trade the USD/JPY round trip, and all of his money were in that trade, what would be the implied value of their account?

2. ### igcompany

we also need to know the broker that he uses and their comissions. this way we will find out his account value.

4. ### moarla

to calculate the trading account you need to know also how much leveraged he is in Forex...1:50 1:100 etc...

All it says is traded 200k contracts of USD/JPY on interactive brokers..
His commission fees are \$1000 per round trip per trade, so I was trying to figure out his implied PA.

6. ### achilles28

impossible to say. we dont know the stop size.

but the notional value of each position is around 20 million usd.

~0.5 pip commission x 10\$ per pip, per full lot = 5\$ commission, per lot.

1000 / 5 = 200 lots

200 lots x 100,000 = 20 million

assuming risk per trade of 2%, account size can be guessed at

10 pip stop = 200 lots x 10 pips x 10 dollars per pip = 20,000 / 2% = 1 million account value

50 pip stop = 200 lots x 50 pips x 10 dollars per pip = 100,000 / 2% = 5 million account value

probably between 1 and 5 million

7. ### moarla

has nothing to do with Stops...

if your Forex Broker allows you a leverage of 1:200, and there are many of them
you can trade 25.000.000/side with just

125.000 USD !!!!

(stops have to do withj risk, but that is something different)

8. ### cygnetnoir

He is trading USD.JPY with Interactivebrokers, and he is trading 200K, equal to 2 standard lots at a bucket shop. The \$1000 commission is his commission priced in Yen, not USD, so he is paying approx. \$11 USD in commission.

9. ### cygnetnoir

And if the entire account equity were tied up in that trade, then the account value is less that approx. \$5K USD. Initial margin would be \$4,999, and he would need at least 5% on top of that to avoid the danger of a force liquidation, so probably a \$5250 account, more or less.

10. ### WS_MJH

So you just signed up for ET to pry into your "friend's" personal financial matters? This is a creepy thread that should've been deleted.

#10     Jan 28, 2013
ET IS FREE BECAUSE OF THE FINANCIAL SUPPORT FROM THESE COMPANIES: