what actually happens when one uses their forex broker to buy XAUUSD? i used to think it was a cfd for a futures contract, but i'm actually buying gold itself i believe (spot price). does my broker buy some gold somewhere on my behalf that's stored in a vault somewhere? or what?
How do we work out position sizing with XAUUSD, XAGUSD and WTI?
I like to use a fixed dollar amount for my risk.
What I do to work out my position sizing when I trade fx pairs is:
Say I wanted to risk $50 on a trade and my stop loss distance is 72pips, I would:
Risk amount / Stop Loss...