Jalarupa wrote: MightyOne wrote:
Right now the EURGBP has a LeverageUSD of 38:1 and my risk per trade would be 3.4%
PebbleTrader wrote:Where does 0.09 come from in:
X% = LeverageUSD * 0.09
Do what you feel works best for you after you paper trade it awhile.
does your broker give you this info? where can we get this info from or does it involve some calculation on your part?
Account is in USD<---home currency
Base/Home = EUR/USD
Current price of EUR/USD is 1.2906
(Price * Units) / LeverageOffered = Margin
(1.2906 * 10,000) / 50 = $258.12
Units / Margin = LeverageUSD
10,000 / 258.12 = 38.7
LeverageUSD for EURGBP = 38:1
If the base currency is USD then leverage = LeverageOffered
-But what if the pair is CAD/CHF, there is no CADUSD!
To flip the USDCAD you divide 1 by the price of USDCAD:
1 / 0.9922 = 1.007
(1.007 * 10,000) / 50 = $201.57
10,000 / $201.57 = 49.6
LeverageUSD for CADCHF is 49:1
PS: that is what D6 is for in my sheet; enter the price of the BASE/HOME and it will tell you what the LeverageUSD is in D4.