So can I set it up so 1 pip = 1 dollar?

Discussion in 'Forex Trading' started by IronFist, Dec 29, 2007.

  1. Ok, I might be phrasing this question wrong, but is it possible to have an account using such small leverage such that 1 pip = 1 dollar?

    If I were to do this for real, I'd like to open an account with about $10k, but have 1 pip = $1, so basically I can make tons of losing trades and not even come close to blowing myself out. I don't want any of that crazy 400:1 leverage crap where you blow your account out with one bad trade. I realize that with 1 pip being $1 I'd be making or losing a few dollars per day, but that's fine. This is practice, not making a living.

    Thanks.
     
  2. Parabola

    Parabola

    Oanda.com
     
  3. Thanks, I have an FX Game account there.

    But I'm not used to FX terminology. Can you enter whatever size trades you want? Is their real platform the same as the game one?
     
  4. One lot (100K) of EUR/USD is $10 per pip. Trade 10K lots and each pip will be $1.
     
  5. Is this a good strategy for a beginner to stay afloat for a while?

    I'm on Oanda's website but I can't find their fees. I heard it's expensive to withdraw money from your account... shouldn't that be free? It's free with my Scottrade account.
     
  6. Parabola

    Parabola

    To my understanding it's the same, other than FX game is also sued to test beta upgrades, etc before implemented into the live FX trade platform.

    Other than that yes, it is the same.

    You can enter any size you want to, for instance, 10,000 units would be $1 per pip. The leverage can be adjusted up to 50:1 which will affect the margin required for each trade, but as far as trade size goes, it is totally adjustable.

    They are a good outfit.
     
  7. Parabola

    Parabola

    To my understanding it's the same, other than FX game is also used to test beta upgrades, etc before implemented into the live FX trade platform.

    Other than that yes, it is the same.

    You can enter any size you want to, for instance, 10,000 units would be $1 per pip. The leverage can be adjusted up to 50:1 which will affect the margin required for each trade, but as far as trade size goes, it is totally adjustable.

    They are a good outfit.
     
  8. So is it like $1 per unit? I mean to buy a 10k lot would that be $10k? And if you wanted to buy a 10k using less than $10k, then you'd be using margin, right?

    Sorry, I completely understand margin as it relates to stocks, but something about FX always trips me up.
     
  9. Set up a FX Mini-Account and trade mini-lots ($10,000) at $1.00 per pip. Leverage is irrelevant, it can be 400:1, 200:1, 100:1, 50:1 or 20:1, it will make no difference on trading one mini-lot at a time with a $10,000 account. A pip will always be $1.00 no matter what leverage you use.
     
  10. Ok now I'm confused. I thought the value of a pip varied with the size lot you bought. Does a "mini account" confine you to only trading 10k lots? What if I wanted to adjust size so 1 pip was $2, or $10, or $8.24?
     
    #10     Dec 29, 2007