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Forex brokers are vital for both retail and institutional Forex traders success and its also very important to trade using a reliable trading platform. You can vote


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Forex lot size definition


forex lot size definition

it, theyll be able to tell you what the pip value is for the currency you are trading at that particular time. What is a 'Standard Lot a standard lot is the equivalent to 100,000 units of the base currency in a forex trade. A Forex lot is a trading term used to describe the size of a trading position. You will then have to adjust your calculations so you can find the Pip Value on Mini Lots, Micro Lots or any other Lot size you wish to trade. As the market moves, so will the pip value depending on what currency you are currently trading. Learn it, use it and profit with. Lets just say that you have deposited first 5,000 to your trading account that the leverage is set at 100:1.

As you can understand from the example above, the P/L, and your Margin will affect your Margin Level. By looking at the numbers above, you will prefer to use a higher leverage for your account. Mini Lots, now, lets use smaller sizes. The first time you will login to your MT4 trading account you will notice that the Balance and the Equity is 5,000 and this is due to the fact that you did not place any trades yet.

There are also a mini, micro, and nano lot sizes.
A standard lot is the equivalent to 100000 units of the base currency in a forex t rade.
A standard lot is similar to trade size.
It is one of the three lot sizes; the other.
Historically, currencies were traded in specific amounts called lots.

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Youre trading 1 standard Lot (100,000 base units) on EUR/USD. A standard lot represents 100,000 units of any currency, whereas a mini-lot represents 10,000 and a micro-lot represents 1,000 units of any currency. This means that you will receive a Margin Call when the USD/CHF falls 5 pips only. Understanding the forex lot is key to trading success. Think of your broker as a bank who basically fronts you 100,000 to buy currencies.


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