Modal 100 Dollar, Leverage 1:500, How Many Pips is the Resistance?

To Robet ..

Please be aware that forex trading includes margin trading. Where when you BUY or SELL using broker money. And part of your deposit becomes a margin / collateral. That is why choosing good leverage is important to do.
The size of the margin is

Margin =  Buy or SELL Price * trading lot * 1 Lot Contract Size * Leverage used

You can ask the broker you are using what the contract size value is for the type of account you are using. Because the size of the contract can vary between account types and at each broker.

Below is an example:

 

The value of 1 contract lot is different.

If your account value of 1 lot = 100,000, and BUY EUR/USD at 1.1100 with a trading lot of 0.10, then to calculate the margin is:

Margin =  Buy or SELL Price * trading lot * 1 Lot Contract Size * Leverage used

1.1100 * 0.10 * 100,000 * 1 : 500 = $ 22.2

So your margin for BUY EUR/USD is approximately $ 22 - 23

1 pip is worth $ 1 trade with a lot of 0.10.

A strength of 100 pips with a capital of $100 for 1x open EUR/USD.

This is different if you trade with a lot of 0.01 small margin value ($ 2.2) and large pip strength (1000 pips) because 1 pip in lot 0.01 = $ 0.10

Therefore, to be more specific, please ask your broker what the value of 1 lot contract size is.

Thanks.

Sorry master, I saw this question earlier and I also want to ask why 1 lot = 100,000 with a capital of 100usd OP 0.01Lot can only withstand 1000 pips, when it should be 10000 pips
100usd/0.01=10000 pips
Thank you

To Putra..

1). If 1 lot = 100,000 then:

1 lot = 100,000 ( $10)
0.1 = 10,000 ( $1)
0.01 = 1,000 ( $0.10)

If the capital is $100, trade with lot 0.01 then the resilience is 1,000 pips
because 1 pip in lot 0.01 = $ 0.10

2). If 1 lot = 10,000 then:

1 lot = 10,000 ( $1)
0.1 = 10,000 ( $0.1)
0.01 = 1,000 ( $0.01)

If the capital is $100, trade with lot 0.01 then the resilience is 10,000 pips
because 1 pip in lot 0.01 = $ 0.01

This calculation depends on the type of account used. It could be different between brokers.
 
I calculated :

- Cent accounts at MFX start with 0.10, the value is 100 or equivalent to $0.01 / pip. Then 1 lot is = 1,000 contract size or equivalent to $0.10 / pip

- Cent accounts at Insta forex start with lot 0.10, the value is 10 or equivalent to $ 0.001/pip. Then 1 lot is = 1.00 contract size or equivalent to $0.01 /pip

While standard accounts at Insta forex start with lot 0.01 which is worth 100 contract size or equivalent to $ 0.01 / pip. Then 1 lot is = 10,000 contract size or equivalent to $1 /pip

While standard accounts at MFX start with lot 0.01, which is worth 1,000 contract size or equivalent to $0.10 / pip. Then 1 lot is 100,000 contract size or equivalent to $10
/pip

Once again, the type of account can vary between brokers. Some start from lot 0.01, 0.10 or 1. and The contract size value can be different, so it affects the strength/resilience of pips or floating.

Thanks.

Thank you master, it turns out there is a formula.

My master uses a HotForex demo account. I tried using 1 lot for the EURUSD pair, where every 1 pip movement moves 1 dollar. I tried using 1 lot for the XAUUSD pair, where every 1 pip movement moves 1 dollar. The contract for EURUSD is 100,000.00, while for XAUUSD it's 100,000.00; I saw those numbers in MT5 pair XAUUSD Properties. Is the pricing in the demo account the same as the pricing in the live account?

@ Rudi Hartono:

Incidentally, I do not trade on HotForex, so I don't really know if the rules at broker HotForex are the same as the rules at InstaForex where for 1 lot EUR/USD the value per pip = USD 1.

But in general, brokers apply rules based on international forex trading standards, namely 1 lot EUR/USD has a value of USD 10 per pip. The international standard for contract value in forex (including EUR/USD) is USD 100,000.

For XAU/USD, the contract value is 100 troy ounces (or 3.1 kg) per 1 lot. The value per pip for XAU/USD is: number of lots x USD 1. For example, trading 1 lot XAU/USD then the value per pip = 1 x USD 1 = USD 1.

- Is the price in a demo account the same as the price in a real account?

Price movements and conditions in the demo account are the same as in a real account. A demo account is indeed created for practice trading before venturing into a real account.