MightyOne wrote:thepark wrote:
The dollar value of a macro is a function of the dollar per pip value and the MACRO number (number of pips per line) is it not? So if i divide my $/pip by 16 to trade SIXTEENS my actual real pip value of the MACRO will increasing proportionately hence the value of the macro is fixed.
but how can the space between lines between the lines change if you are trading a certain macro number (SIXTEEN, EIGHTS)? because it dictates the number of pips of that MACRO unless i say switch from trading SIXTEENS to EIGHTS?
thanks for this..... sorry for bearing with me.
If a pip is $50 then each macro is $50.
$3.13 x 16 = $50
$4.17 x 12 = $50
$6.25 x 08 = $50
If I wish to "narrow" the spacing of the lines from SIXTEENS to TWELVES then I increase my position size from $3.13/pip to $4.17/pip.
As soon as I "add" to the position the lines narrow and I gain/lose at a rate of TWELVES.
Sorry if I explain things poorly, I hope that this answers your question.
Thanks MO, i appreciate the time you put in to explain these concepts. You don't owe us anything.