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Position Sizing on a Rand Account
2:55 · 8 chapters · Forex lessons, part 115
What you'll learn
On a R10,000 account, 1% risk is R100. Here's how to turn that and your stop into a lot size, for EUR/USD and USD/ZAR.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- Why 1% risk is the loss you accept, not the position size
- Key point 2
- The four-step calculation from rand risk to lot size
- Key point 3
- A worked EUR/USD example with a 20-pip stop
- Key point 4
- Why USD/ZAR needs a much smaller position
- Key point 5
- What to do when the answer is below 0.01 lots
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.