Posts Tagged ‘Brokers’

How do I convert the “lot size” in your Planner/Calculator to my regular broker trading platform?

When you download and read The Secret Forex 4.2 Formula, you also get free access to a planner/calculator which allows you to see how Logical Forex works in your own life. The Planner will show you how to allocate the number of lots to trade such that you have minimum risk, and can still make serious money by simply increasing your lot size over time… while still trading exactly the same way every day with Logical Forex.

The lot sizes that the Planner shows you are based on 1 Full Lot, where that is 100,000 "units" of a currency pair. The Planner may show you "partial lots" such as 0.4, which simply means 0.4 of a fill lot, or "40,000 units" of a particular currency pair.

There are several factors involved in determining how you enter a trade in each particular broker. All of them are a bit "different" depending on what account type you setup with your broker.

With a typical "standard" account or a "mini" account or a "micro" account… each one of these has a different "base" for the "number of units" you will trade.

Let’s start with the Standard Account, meaning "1" is equal to "1 Full Lot" which is 100,000 "units" of a currency pair, such as EUR/USD, so "1 Full Lot" is equal to 100,000.

The Secret Forex 4.2 Formula Planner shows you lot sizes related to 1 Full Lot.

So, if you see "0.4 lots" on the Planner, you would trade "0.4 lots" in a standard account. In most brokers, you would actually enter it that way… "0.4" – which is 40,000 "units" of the standard "100,000".

For a Mini Account, everything is scaled where "1 = 10,000 Units". So, for a 0.4 lot trade, you would enter "4", which equals the same 40,000 units.

For a Micro Account, the scale is "1 = 1,000", so for a 0.4 lot trade, you’d enter "40".

You may have to contemplate all of this for a moment, but it gets easy when you always start with 1 Full Lot = 100,000 and go from there.