Rezo I would think the (inflated?) % indicated above could be a bit hard to understand immediately by some new visitors. Please consider to simply use a net % (otherwise, specifying also net % x Margin ratio). Therefore people can compare it easily, and you can even change your margin ratio if wanted anytime. Just a thought!
Hi Odd Trader. Yes, sorry. I will explain. I use 1:4 gearing on each and every trade. All trades are executed of same contract size in order to maintain stability. For example, with 50k investment, I open this trade with 200k position. That's my money management, and as you mentioned, others may use different contract size, and %of target and stop (risk) will change as well. In my example, my trade is of 200k, and if I have stop loss of 89 pips on euro, it means I am risking 89*10$/pip*2lots=890*2=$1780 risk accepted on this trade, and $1780 is 3.56% of 50k, same for target (objective) - its 161 pips, and that's target for $3220 (161*$10/pip*2lots) and $3220 is 6.44% of 50k. That's where ------------------ Stop@1.1120 (89/3.56%) Target@1.1370(161/6.44%) ----------------------------------- came from. In case its a trade on usdchf, usdjpy - and rest - those, price for pip on which depends on pair price (for ex, if usdyen is 116.00, 1 pip is worth $8.62 for each 100k lot, and if price is 120.00, then pip worth is $8.33) - for those trades its also easily calculated. For each 100k contract the net profit/loss is: [abs(buy price - sell price)*100,000] / (closing price) For example, I am holding currently short on usdchf @1.3899, and currently the price is 1.3787. Its 112 pips profit at the moment. So, if I want to calculate the profit at the current price: 0.0112*100,000/1.3787=$812.36. as I am holding 2 lots, its $1624.72, or +3.25% of initial investment (50k) - of course it easier just to look at trading platform and see what the current status of the trade . But in this manner I can calculate the risk I take for each trade in % and the objective target) of the trade. Hope this is what you asked, regards, Rezo.
Ok, euro has slipped slightly below 1.1210 and closed my trade at entry point. You never know, but it seems like we are going to have some more correction here - I will be seeking to reenter this trade if I get to. Rezo