How Of Capital Needed For Forex Trading
If you are asking for trading forex capital or how much capital is for a forex fund, the following explanations will try to determine what kind of capital it is.
Maybe for those of you who are new to the world of forex or the term is just starting the forex business, you will find out how much capital is for the forex business. So that it often submits these kinds of requests:
1. How much capital is needed for forex trading?
2. What is the ideal capital for forex trading?
3. How much capital is needed for safe trading?
Regarding some of the capital needed in forex trading, actually it must be calculated and included in the trading program. This means that it must be associated with the strategy strategy that will be used in trading as well as the type of management strategy that will be used at night.
But for those who are just starting to build this forex, of course they may not be able to match it at that stage.
How many times do you want to make a transaction?
So, so that the trading experience we can get is more, then the focus is to get the opportunity to make as many transactions as possible. In fact, it cannot be denied that forex trading is making money with money through a tranny.
So, Capital = Fee per transaction X Amount of transaction balance
Transactions are usually capital that is lost when making one transaction. How to calculate it, please open a 1 lot position and then pay attention to the change in capital for every one lot. From there you can multiply the constant change in capital by the amount of the loss.
The theory:
If the leverage you use is 1:500, then for trading 1 lot you need a margin of $20, and every price that moves 1 pips your capital will increase or decrease by $1. With a target of rоfіt 20рірѕ and a stoploss of 20 then if your trade is lost, you lose еаr $ 20 .
If you want 10 times the transaction before your capital runs out, it means that you need a capital of about $200.
The appropriateness of the profit earned
Our goal in rough trading is to get income that we can enjoy or that can be used to fulfill our needs. What that means if we trade every day to spend a few hours while the results can't be enjoyed or can't make our lives happy.
Next, ask ourselves, if we expect big results that can exceed your income if your position is as an employee while you are doing it?
Even though the decisive factor for roft is:
1. Lot size for transactions
2. The number of pips received during a win transaction
3. Transaction frequency (number of transactions)
Which if formulated, Total Profit = Lot size per transaction X change in capital per pips X amount of money earned X frequency of transactions
From here it can be concluded that in order to get faster trading results, we need more capital so that we can do it.