How much do you need to trade at £1 per pip on forex

[warrenski]

Hi

How much do you need to trade at £1 per pip on forex ?

If I had a £100 account and traded 5% of it so that is £5 and traded at 200 time leverage
so that would be like trading £1000 and if a currency pair moves 1 pip that is 0.001 then would that be trading at £1 per pip ?

5% of your fund to trade is what people geneally advise (at most anyway) and lots of trading platforms offer 200 x leverage (for high leverage) as well.

Is this right ? or am I missing something ?

Thanks,
Warrenski

 

[Chartsy]

£1 per pip is a mini lot or 10000 units , how much you need depends on your leverage, with £100 100:1 is enough to trade that, 200:1 would only need £50 etc....depends on the broker really

 

[warrenski]

Ok thanks Chartsy

Are you saying to trade at £1 per pip you need to get a mini lot, and you would have to invest the whole £100 (at 100:1 leverage) / £50 (at 200:1 leverage) in order to do so ?

 

[Chartsy]

yeh you;d have to have all your $100 margin on that

 

[Rhody Trader]

A little correction here. It's only in the case of GBP being the quote currency that you'll have fixed pip values (£1=mini contract, etc.). And since EUR/GBP is the only case where sterling is the quote currency among the traded pairs, any other time you trade a GBP pair you're going to have variable pip value in terms of £. For example, if you're trading a mini contract of GBP/USD at a rate of 1.6000, then in £ terms a pip is worth 0.0001/1.60 x 10,000 = £0.625

 

[warrenski]

OK i see,

can you trade for less than that like £10 and make £0.10 per pip, or is a minilot the minimum u can trade ?

Thanks,
Warrenski

 

[warrenski]

thanks for that claification Rhody.
I was using £ as an example cos i'm british though you could change £ for $ in my example.
I'm thinking about trading £/$ and the good thing is if is quoted in $ then you would less money in pounds to trade a mini lot £60 for $100 instead of £100 (assuming a 100:1 leverage) and also a lower overall bank amount to trade a minilot as 5% of your total.