What does capacity mean in an important message?

The Company is suggesting to buy/sell from given support/resistance level with certain “Capacity”.

Now, what does that mean?
If a trader has $1000 to trade

And XAUUSD msg says
“Trade BUY @ 1540/1528/1515/1500=10/20/30/40% Capacity against SELL GBPUSD”

Client needs to trade in XAUUSD with a hedge against GBPUSD

Capital = $1000
No. of Signals = 2
Each Signal require = $1000/2 = $500

NOW let us give you an explanation how you should trade
Leverage : 1:500

XAUUSD CALCULATION

Capital for XAUUSD = $500 = $250000 (with leverage)
$250000/1550 (Gold Price) = 160 qnty = 1.6 lot

XAUUSD
1st level = 10% of 1.6 lot = 0.16 lot
2nd level = 20% of 1.6 lot = 0.32 lot
3rd level = 30% of 1.6 lot = 0.48 lot
4th level = 40% of 1.6 lot = 0.64 lot

GBPUSD CALCULATION

Capital for GBPUSD = $500 = $250000 (with leverage)
$250000/123000 = 2 lots

GBPUSD
1st level = 15% of 2.0 lot = 0.3 lot
2nd level = 15% of 2.0 lot = 0.3 lot
3rd level = 35% of 2.0 lot = 0.7 lot
4th level = 35% of 2.0 lot = 0.7 lot

WHERE TO CONTACT US
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2 thoughts on “What does capacity mean in an important message?

  1. Good evening sir. Pls, what’s Hedging Strategy? And what’s it applied for ad how. Iam confusing it for correlated currencies.

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