Quoting LinusDislikedDial, this brings me to a second question. On the "PF forum position sizing dollar" spreadsheet, column A refers to Bid/ask & #Contracts. It starts with 1 and runs up to 4,093. I'm not sure how 4,093 (or any of the contracts above 10) is achieved on a single trade - can you explain this to me.
ThanksIgnored
Thanks for the PM. Yeah, that's a great spreadsheet Fiji put together last year.
The numbers in column A are the position size for that trade. In the spreadsheet you linked to me they represent the number of mini lots you would enter that trade with.
Take a look at the trade on line 30 of the spreadsheet (or it might have been 29 or 28) At any rate, it is the trade where the balance stands at $7098.
In the spreadsheet you are risking a maximum of 2% of your balance on each trade. 2% of $7098 is $141.96. Remember this number as we'll use it again in a moment.
In the spread sheet the number of pips for your stop is 35. For a mini lot each pip has a value of $1. (Note: some pairs pip value is slightly less than $1, but don't worry about that for now.)
So a 35 pip stop represents a total pip value of 35 * $1 = $35.
Now, take the $141.96 and divide it by $35 and you get 4.056 mini lots. Since you can't have fractional mini lots, you would round that down to 4 mini lots. If you look, you will see that 4 is the value in column A of the spreadsheet. When you place the trade it will be for 4 mini lots.
If this still doesn't make sense, please ask further questions, but please read the money management section of the beginner's forum before you do so. It will help clear things up a bit as well as trigger a few more questions.
Let me know how I can be of further assistance.
Dial
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