Price distance calculation after changing position's lot size
Created at 01 Oct 2022, 11:14
Price distance calculation after changing position's lot size
01 Oct 2022, 11:14
Hi!
Trying to figure out how to calculate beforehand the distance-change in price after I would change the size of the position.
My question is, when I change a position's lot size, how that translates to pip distance? In case of XauUsd, let's say the price moved 1000-2000 pips in favor and I ammend my position from 0.01 to 0.10 with 100-200 usd capital. If the position was at 1600 with 0.01 lots, price moved to 1610-1620 and bought 0.09 more lots at the same one, what would be my new position's price level?
Thank you
ShaunaB1
27 Apr 2024, 11:25 ( Updated at: 29 Apr 2024, 04:57 )
To calculate the new price level after changing your lot size, you’ll need to consider the average price of the combined lots. For XAUUSD, if you initially bought 0.01 lots at 1600 and then added 0.09 lots at 1610-1620, your new average price would be weighted more towards the second purchase price due to the larger lot size. Simply put, your new position’s price level will be closer to the price at which you bought the additional 0.09 lots. Can dog eat
@ShaunaB1