These are the top 19 pairs from:
Dec 01-2020 --- Feb 22-2021
Remember to reduce your lot size per trade as you increase the pairs you trade.
Since each pair can have up to three open orders per pair, you may need to speak to your broker about margin requirements. i.e. how much margin would be used in your account if you trade thirteen pairs and all thirteen had three open orders at the same time.
Our general rule is to not trade any more than 0.01 lots per trade, per thousand dollars of account equity for a group of 6 pairs.
So if we have a $10,000 account and we are trading the first group of 7 pairs then we would potentially use 0.10 lots per trade.
If we are using the 2nd group of 11 pairs we may decide to set our lot sizes to 0.07 lots per trade.
If we are going to receive signals from the third group of 14 pairs then we would reduce our lot size to 0.05.
Remember to DEMO trade your strategy for a sufficient period before committing live funds.
Dec 01-2020 --- Feb 22-2021
Remember to reduce your lot size per trade as you increase the pairs you trade.
Since each pair can have up to three open orders per pair, you may need to speak to your broker about margin requirements. i.e. how much margin would be used in your account if you trade thirteen pairs and all thirteen had three open orders at the same time.
Our general rule is to not trade any more than 0.01 lots per trade, per thousand dollars of account equity for a group of 6 pairs.
So if we have a $10,000 account and we are trading the first group of 7 pairs then we would potentially use 0.10 lots per trade.
If we are using the 2nd group of 11 pairs we may decide to set our lot sizes to 0.07 lots per trade.
If we are going to receive signals from the third group of 14 pairs then we would reduce our lot size to 0.05.
Remember to DEMO trade your strategy for a sufficient period before committing live funds.
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Margin
Margin is the money that your Broker borrows from your account in order to hold a trade open.
When you Buy 0.10 lots of the EURUSD at our favorite US based broker at 50:1 margin, the broker will hold out $242 from your available margin.
You can see in the image below that we placed a trade for 1.0 lots on the EURUSD and the margin required was $2,400.
Margin is the money that your Broker borrows from your account in order to hold a trade open.
When you Buy 0.10 lots of the EURUSD at our favorite US based broker at 50:1 margin, the broker will hold out $242 from your available margin.
You can see in the image below that we placed a trade for 1.0 lots on the EURUSD and the margin required was $2,400.
Margin is not a transaction cost, but rather a security deposit that the broker holds while a forex trade is open.
Trading currencies on margin enables traders to increase their exposure.
We can see from the chart below that 500:1 leverage at some brokers have a much lower margin requirement to hold open the same trade.
Trading currencies on margin enables traders to increase their exposure.
We can see from the chart below that 500:1 leverage at some brokers have a much lower margin requirement to hold open the same trade.
General Trading Rules Of Thumb.
It is always recommended to demo trade before you choose to trade with your live account.
A mental exercise:
With most of the signal accounts we offer, you will be able to choose from 28 currency pairs.
The pairs you trade are up to you and we will discuss later how to choose.
Each pair you receive trades from can have a max of 3 open orders at the same time.
If you are trading 10 pairs, you could have as many as 30 open orders at the same time. Would your account equity be able that ?
So what would that look like to have 15 open trades at once?
How much margin is used, depends greatly on the pairs you choose.
You can see in the chart above that the NZDCAD is only $146 for a 0.10 lot trade at 50:1.
The solution to making this work is to use much smaller position or (Lot) sizes. This applies to all of the pairs you are trading. We recommended using a spreadsheet to make your calculations and have a friend or trading partner check your math. You should also consult with your broker about how much margin would be used if you were trading up to 3 max orders on the amount of currency pairs you want to trade, at your chosen lot size per trade.
If you have a $10,000 account, most traders would avoid using more than 25% of the balance for margin.
All of this margin is in use while you have open trades and those trades will need room to breathe. That means they will need to use part of your balance as "draw-down" before they are closed either at a profit or a loss. If you use up all of the money in your account to open new trades then your account will not be able to flex with the market prices and you may have a margin call by your broker. Make sure to read and understand your brokers policies.
Trade up to these levels, but no more.
It is always recommended to demo trade before you choose to trade with your live account.
A mental exercise:
With most of the signal accounts we offer, you will be able to choose from 28 currency pairs.
The pairs you trade are up to you and we will discuss later how to choose.
Each pair you receive trades from can have a max of 3 open orders at the same time.
If you are trading 10 pairs, you could have as many as 30 open orders at the same time. Would your account equity be able that ?
So what would that look like to have 15 open trades at once?
How much margin is used, depends greatly on the pairs you choose.
You can see in the chart above that the NZDCAD is only $146 for a 0.10 lot trade at 50:1.
The solution to making this work is to use much smaller position or (Lot) sizes. This applies to all of the pairs you are trading. We recommended using a spreadsheet to make your calculations and have a friend or trading partner check your math. You should also consult with your broker about how much margin would be used if you were trading up to 3 max orders on the amount of currency pairs you want to trade, at your chosen lot size per trade.
If you have a $10,000 account, most traders would avoid using more than 25% of the balance for margin.
All of this margin is in use while you have open trades and those trades will need room to breathe. That means they will need to use part of your balance as "draw-down" before they are closed either at a profit or a loss. If you use up all of the money in your account to open new trades then your account will not be able to flex with the market prices and you may have a margin call by your broker. Make sure to read and understand your brokers policies.
Trade up to these levels, but no more.
- 0.01 lots per trade for a $1,000 USD account
- 0.10 lots per trade for a $10,000 USD account
- 1.00 lots per trade for a $100,000 USD account
- 10.00 lots per trade for a $1,000,000 USD account
Do not trade during worldwide economic disruptions.