# Currency

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I am new to trading and I am really struggling in terms of buying. I an currently just using the demo to get to grips with everything.

When i purchase and lets say gbpusd at 1.1254 and execution of lets say 1.0, how do I calculate how much I am spending.

Any help would be appreciated.

Kind regards

Edited by MrE
6 hours ago, MrE said:

I am new to trading and I am really struggling in terms of buying. I an currently just using the demo to get to grips with everything.

When i purchase and lets say gbpusd at 1.1254 and execution of lets say 1.0, how do I calculate how much I am spending.

Any help would be appreciated.

Kind regards

Hi, because you are not actually taking delivery of the underlying but rather taking a position on the future direction of the market then it's not so much a case of how much you are spending but more a case of how much you are risking.

So you have decided gbp will gain in relation to usd and are willing to risk £? in the expectation your decision is correct and the market will rise so you will be able to realise a profit.

The £? risk is the number of points of your stop loss on the trade x the position size in £/point and is displayed on the deal ticket.

You will probably not want to risk more than a certain percentage of you total account balance on any single trade, for most traders that will be between 0.5% and 5% depending on your risk appetite.

So if your stop loss is a large number of points away then the position size of the trade will need to be relatively small (and vis-versa) in order to fit within your risk appetite percentage.

1 hour ago, Caseynotes said:

Hi, because you are not actually taking delivery of the underlying but rather taking a position on the future direction of the market then it's not so much a case of how much you are spending but more a case of how much you are risking.

So you have decided gbp will gain in relation to usd and are willing to risk £? in the expectation your decision is correct and the market will rise so you will be able to realise a profit.

The £? risk is the number of points of your stop loss on the trade x the position size in £/point and is displayed on the deal ticket.

You will probably not want to risk more than a certain percentage of you total account balance on any single trade, for most traders that will be between 0.5% and 5% depending on your risk appetite.

So if your stop loss is a large number of points away then the position size of the trade will need to be relatively small (and vis-versa) in order to fit within your risk appetite percentage.

Hi Caseynotes,

Thank you for replying. So is the execution number is the percentage of your investment, e.g. lets say I deposit £100. My instant execution is 0.05 for one order and another order is 5.0. Are they both 5% of my initial investment.

Thank you for bearing with me.

Kind regards

Edited by MrE

Hi

advice is go away & learn

If you do not understand this (the very basics) then how can you expect to make money?

i am not being mean here just trying to stop you from losing your shirt

go away and study for a min of a year pref 2-3 and then have a small go

Neill

12 minutes ago, MrE said:

Hi Caseynotes,

Thank you for replying. So is the execution number is the percentage of your investment, e.g. lets say I deposit £100. My instant execution is 0.05 for one order and another order is 5.0. Are they both 5% of my initial investment.

Thank you for bearing with me.

Kind regards

The reason for the low max % risk is so a string of losses (inevitable) won't blow the account or deplete it to such an extent as to be untenable, to survive is the first goal.

So if your account size is £100 and you are willing to risk 5% on any single trade then your max risk is £5.

If your stop loss needs to be 10 points then your position size should be set to £0.5/point

If your stop loss needs to be 5 points then the position size should be £1/point.

If your stop loss needs to be 20 then you need to be on a mt4 account where position size goes down as low as £0.1/point 🙂

Hey @MrE - we have a number or resources available which guide you through these first steps of spread betting (or CFD trading if you're outside the UK).

Let me know if you're spread betting or on a CFD account and i'll try and give a worked example laying out the 'cost', as well as deposit required to place the trade, and your total notional expo

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• Hi @THT Thanks for sharing great content. Have a Great Christmas and New Year All the best MongiIG
• FTSE 100, DAX 40 and S&P 500 remain bid as inflation slows Outlook on FTSE 100, DAX 40 and S&P 500 following a strong November. Source: Bloomberg  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 01 December 2023 12:32 FTSE 100 ends month in positive territory The FTSE 100 slid to 7,383 on Thursday before reversing to the upside as inflation continues to weaken in the eurozone. The 55-day simple moving average (SMA) at 7,494 capped and is doing so once more on Friday morning. Once overcome, the 17 November high at 7,516 will be in focus, together with the 7,535 November high. Minor support is found at the 21 November low at 7,446. Source: ProRealTime DAX 40 continues to surge ahead as eurozone inflations weakens The DAX 40 continues to surge ahead as eurozone inflation came in weaker-than-expected on Thursday with the July peak at 16,532 being in sight. Minor resistance on the way up can be spotted at the 16,421 31 July low. Support below Friday’s intraday low at 16,236 is seen at Thursday’s 16,165 low. More significant support can be found between the August and September highs at 16,044 to 15,992. Source: ProRealTime S&P 500 sees best November since 1980 The sharp November rally in the S&P 500 has lost upside momentum but the index nonetheless continues to trade in four-month highs as the Fed’s preferred PCE inflation gauge came in as expected at 3% year-on-year in October. November was not only the best performing month for the S&P 500 this year but also the strongest November since 1980. Resistance is found at the November peak at 4,587, followed by the July peak at 4,607. While this week’s lows at 4,539 to 4,537 underpin, the short-term uptrend remains intact. Slightly further down sits potential support at the 4,516 mid-September high. Source: ProRealTime
• If you want to succeed in this game you have to know and understand the rules - 99.9% of people don't, but of those a few % slip into the trading success net It's not my Intention to show you how to trade or make money - I'd be loathed to help some greedy wealthy person increase their wealth, through a easy trading method, but I'm happy to show you the TIME side of the markets, because I know hardly anyone will take note or use and it satisfies my "I tried to help them" lifes reflections etc Above I showed you Gann Square of 9 showing MONTHS on the SP500 and that lots of those turns on a monthly basis came out on KEY points on the Sq9 - namely the UP, DOWN, HORIZONTAL and DIAGONAL lines/points If you quickly study the chart below, you will see lots of times the EURUSD hit some of those points nicely, look at month 218 & 257 as examples - now scroll up and look where those 2 numbers are located on the Sq9 They are smack bang on key positions of that Sq9 chart - All I want to show you is how freely traded markets are somehow landing on pre-built number sequences over and over - not every one is a direct hit, but I'm sure you'd agree in the SP500 example above AND this EURUSD below its a canny coincidence! So, lets look at the EURUSD, because the Sq9 above resulted in too many options and you'd struggle to formulate a easy to use strategy from Gann used lots of differing Squares to calculate from, he used a Square of 12 (12x12 = 144) and we'll look at that for the EURUSD MONTHLY chart (Note ALL Gann's Squares where derived from the the pyramid's!)   We'll keep it simple and just use STATIC monthly cycles, here's a 12 month cycle (remember we are using Ganns Square 12 to base this all from) As you can see its quite effective, I've highlighted the 36 month cycle with THICK lines, because its resonating with the market pretty **** well and as you can see the Square of 144 is working really well with the EURUSD (All markets will work well with differing Squares, so its not a one size fits all thing) To save a huge amount of explaining, the square of 144 has principles within it that resonate with the sacred geometric solid of a PENTAGON and we know from mathematics, that a pentagram fits into a pentagon in the form of all its sides UNFOLDED, when these open arms/points hit the edge of a circle it creates a set point on that circle and you have 5 points of 72 degrees around that circle (Remember Pythagoras, he had a secret hidden order where the Pentagram was the symbol of the order! and he was a very very very clever person)  So IF, 72 (half of the Square of 12) is important then, harmonically related numbers to that 72 will also be Important, as in the chart above we've seen that 36 was In the chart below I've tided up the chart a little and added a 54 month cycle because 54 is an Internal angle of the pentagram, its also a Hurst cycle too - I also for visuals show basic Fibonacci cycles of 38/62/138/162 MONTHS  But as we can see 54 & 36 months  are definitely causing the EURUSD to sing to its tune - Remember these are STATIC cycles, the markets are NOT static, hence why its not perfect and exact Hopefully given you some food for thought - Remember you are VIEWING Time & Price action on a 2 Dimensional chart, Price & Time don't move in a 2 Dimensional fashion, Have a Great Christmas and New Year THT
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