To calculate the transaction size, we need to take into account the following details:
- account balance 1,000 RUB;
- EUR/USD currency pair;
- leverage 1/100.
Let us convert RUB in USD.
To do this, we need to divide the account balance = 1,000 RUB by the current exchange rate USD/RUB = 23.6550 =>1,000/23. 6,550 = 42.27 USD
Then we divide the account balance = 1000 RUB by the current exchange rate USD/RUB = 23.6550 => 1000/23. 6,550 = 42.27 USD
Result in USD we multiply by leverage => 42.27*100 = 4,227 USD. Convert EUR in USD.
To open a position with the transaction size of 1 lot (10,000 EUR) for the EUR/USD pair, it is necessary to know the amount of USD which is equal to 10,000 EUR. So, we multiply 10,000 EUR by the current exchange rate EUR/USD => 10,000*1.5475 = 15,475 USD
To estimate the trade size, it is necessary to divide the account balance by the trade size =>
Trade size = 4227 USD/15475 USD = 0.27 lot
With 1/500 leverage, we get 1.35 lot