Deposit 1000 In Insta, How Many Lots Are Ideal?

If you open a standard account there, the volume/lot/pip value with a $1000 capital and 1:500 leverage is:

10.00 lot = $10    = 100 pips = $300 margin
1.00  lot = $1      = 1,000 pips = $30 margin
0.10  lot = $0.1   = 10,000 pips = $3 margin
0.01  lot = $0.01  = 100,000 pips = $0.30 margin

You can calculate yourself how much capital strength, pips and margin if you open a position using 2 lots, 0.80 lots and so on.

in this case you need to be careful. if you over lot, in an instant your capital can run out due to a margin call. for example, if you open with 10.00 lots, your capital strength can only withstand currency movement of 100 pips. If you are wrong about the position and the currency moves more than 100 pips, you will get a margin call / loss.

how ideal this is depends on what percentage you are willing to risk. If you open with 1 lot ($1), the currency's up and down value is $1. If you will set an SL, the minimum is 30 pips.

Generally, all currencies can move due to certain data. even the Canadian dollar (CAD), will at least follow the movement due to the European Crisis. because in this case there is a correlation. and this correlation can be negative or positive. it's just that it may not be too big.



The data above is one example of the correlation of each currency. and you can conclude which currencies have little effect on the EUR (EUR/USD)

To Billy,

“...if for a deposit of 1000 on insta, what is the ideal number of lots would be good?”

This depends on the leverage used and also the pair being traded. For example, if you trade with leverage of 1:500 on the XAU/USD pair with a size of 0.1 lot, then see how to calculate the fund's resilience below.

First, we need to know how much margin is needed to open a position of 0.1 lot with a broker with leverage of 1:500. Here's the margin calculation:

• Margin = (Contract Size^ X Lot X Running Price XAUUSD) X Leverage
• Margin = (100 X 0.1 X 1425) X 1:500
• Margin = (14250) X 1 : 500
• Margin = (14250) : 500
• Margin = 28.5

^ Contract size for XAU/USD is 100

So, it is known that the margin to open a XAU/USD position of 0.1 lot with leverage of 1:500 is USD 28.5.

After the margin is known, the next step is to calculate free margin. Free margin is what is used as fund resilience.

• Free Margin = Balance – Margin
• Free Margin = 1000 – 28.5
• Free Margin = 1000 – 28.5
• Free Margin = 971.5

After knowing the fund resilience, then the fund resilience is converted into points so that it can be seen how many points can be held. Point value for the XAU/USD pair is USD 100 per lot. So the point value for a size of 0.1 lot is USD 10. Therefore, with a fund resilience of USD 971.5, it can withstand floating minus as much as ~97 points (free margin divided by point value). This means, if you open a 0.1 lot buy position at a price of 1425 then the price drops by 97 points or touches a price of 1328, then at that price point your trading will be stopped because your funds have run out.

That's roughly a picture of margin and fund resilience calculations. The simulation of the calculations performed above is only an illustration to make it easier to understand. The actual calculation results regarding the amount of fund resilience may be different (can be more or even less), given the application of margin call and stop out level from the broker.

“...which pairs are unlikely to be too affected by the European crisis?”

Pairs that have a negative correlation with the situation in Europe are CAD, AUD and NZD. So you can trade on those pairs if there is political turmoil in the European zone.

Hopefully this can help.