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  • #8303
    AndiAndi
    Member

    Hey Jacpin,

    thank you for the answer again!

    Yes, I will look to diversify the risk with some commodities and stocks.

    Oooo I see your broker uses a lot of leverage or what is it? I mean what is the reason moving one pip will cause 100$ with 0.01. Are you sure about that?

    #8306
    jacpin2002
    Participant

    @Petko-You are absolutely right and I am seeing how that move right now. My live EA hasn’t done anything with it yet, but I have a couple of EAs in demo that is taking advantage. I’m eager to see how it plays out.

    @Andi-Sorry about that. I wrote it wrong. 0.1 lot size moving 1 pip equals 100USD. I have an oil EA going on right now in demo and is trading 0.01 lot size and the asset has moved 0.7 pips in my favor, so it is giving me a profit of 7USD right now. So, if this was 0.1 lot size the profit would be 70USD or 1 standard lot would be 700USD. 🙂 I believe that this is because the commodities move in points vs pips. So FX Blue live converts the movement of points into pips for us.

    I will stress caution only because I can’t get a lot of history to create robust strategies, so these are most likely used for the short-term.

    #8313
    AndiAndi
    Member

    Thanks for making this clear, Jacpin. I do believe this is from the broker. They decide how much size to be the trading lot.

    For example if you look at the oil specifications with my broker:

    oil trading

     

    You see one contract size is 100 barrels. This means that 1 lot is 100 barrels(around $5000).

    And I see with different brokers it is different for every asset.

    #8325
    jacpin2002
    Participant

    @Andi-Yes, you’re right. I compared your brokers specs on WTI vs. mine and they’re very similar except for contract size. 1 lot is 1000 barrels. Maybe this is why I prefer Brent Oil vs. WTI right now. 😉

    #8330

    Good point here, Andi!

    All brokers decide for themselves the trading size for one lot, so you need to be careful specially if trading on live.

    #8341
    AndiAndi
    Member

    Yes, and the bad thing is that on some assets the brokers do not allow 0.01 as trading size. Which is ridiculous – this is CFD trading. They just force the traders to take higher risks.

    #8375

    Hello Andi,

    yes, but the brokers define their rules. It is up to you if you will trade with this broker or not 🙂

Viewing 7 posts - 16 through 22 (of 22 total)

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