1 Topic by Hannes (edited by Hannes 2017-07-04 11:40:20)

  • Registered: 2016-08-16
  • Posts: 57

Topic: CFD position sizing does not scale properly?

Hey guys,

I've found that position sizing with CFDs does not go up proportionally with the equity (or balance), or maybe I'm missing something. In the example below I'm using 10% as position sizing. I've pasted together 3 lines of the Journal that should make the problem clear. Account balance starts with 1000€, which results in a position size of 1 CFD. It is to be expected, that an account balance of 2000€ should result in exactly 2 CFDs, but it doesn't. Roughly 2000€ in equity (second line) result in 1.7 lots. The third line marks the threshold of reaching 2 lots, which is at ~2400€.

http://i.imgur.com/E3T2heO.png

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Re: CFD position sizing does not scale properly?

It depends on how the margin is calculated for the required CFD. The percentage applies to the maximal margin you can use. There is also an account exchange rate applied. For example if you account is in EUR but the CFD is traded in USD, the margin will be converted in your account currency by using the latest market rates.

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