Management of its capital - Money management
Regulate management of my capital: I use only 25% of my capital to take the advice of the experts. The 75% remainder are there to make safe the 25% placed on the market.
Case of a micro account with 200:1 action leverage
1 micro batch = 1.000$ | 1 pip = 0.1$
Each micro bought/sold batch represents 1/200ème of 1000$, that is to say 5$
Pierre opens a micro account at FXDD of 500$.
By using the prudential rule quoted previously, Pierre will use 25% of the 500$ is 125$.
As each micro batch accounts for 5$, Pierre will be able to buy/sell 25 micro batches simultaneously (25 = 125/5).
I thus advise in Pierre to parameterize the maximum number of micro simultaneous batches with 25 (default value in Zulutrade).
If the capital of Pierre evolved/moved positively and arrived at 600$, it could adapt the full number of micro simultaneous batches
25% of 600$ = 150$, are 30 micro batches (30 = 150/5).
Case of a mini account with 200:1 action leverage
1 mini batch = 10.000$ | 1 pip = 1$
Each mini bought/sold batch represents 1/200ème of 10000$, that is to say 50$.
Paul opens a mini account at Ava FX of 2000$.
By using the prudential rule quoted previously, Paul will use 25% of the 2000$ is 500$. As each mini batch accounts for 50$, Paul will be able simultaneously to buy/sell 10 (10 = 500/50) mini batches.
I thus advise in Paul to parameterize the maximum number of mini simultaneous batches with 10.
If the capital of Paul evolves/moves negatively and dropped to 1200$, it will have to adapt the full number of mini simultaneous batches.
25% of 1200$ = 300$, are 6 mini batches simultaneously.
Case of a standard account with 100:1 action leverage
1 batch = 100.000$ | 1 pip = 10$
Each bought/sold batch represents 1/100ème of 100000$, that is to say 1000$.
Jacques opens a standard account at FXCM of 20000$.
By using the prudential rule quoted previously, Jacques will use 25% of the 20000$ is 5000$.
As each batch accounts for 1000$, Jacques will be able simultaneously to buy/sell 5 (5 =5000/1000) batches.
I thus advise in Jacques to parameterize the maximum number of simultaneous batches with 5.
If the capital of Jacques evolves/moves positively and arrived 40000$, it will have to adapt the full number of simultaneous batches.
25% of 40000$ = 10000$, are 10 batches simultaneously.
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