Position size question

[Oatmeal123]

Let's say i have 10k and i want to open a position of 2% risk with a stop loss of 9.58 pips, so based on the calculator it would as the above picture,
My position size would be 2.08 lots? However when entering a demo trade on MT4, my maximum position size allowed is only 1.67 on a 1:20 leverage.
If i increase to 3% it would be 3.13 lots, which exceeds the allowable 1.67.

Where have i gone wrong Your kindest advice is greatly appreciated, thank you.

 

[Enivid]

@Oatmeal123 First, how do ypu plan to set a stop-loss of 9.58 pips on EUR/USD. Does your broker provide 6 decimal places in EUR/USD quotes in MT4?

Second, please use our Position Size Calculator for MT4 to calculate the position size. You would still get about 2.09 lots as a resulting position size (if you really 9 or 10 standard pips stop-loss), but you would be able to switch to the margin tab and check whether you have enough margin to open such a trade.

Third, there is no error in that calculation - if you want to risk that amount of money with that stop-loss, you can open such a big trade. The fact that you don't have enough margin for it is largely irrelevant for the position size calculation as a risk management issue. You should either increase your account's leverage or stick to lower-size trades (and lower resulting risk, and lower resulting potential reward).