Saturday, April 25, 2015

LOTS

 1 lot = a certain dollar amount of currency that you want
to trade. On a standard (the bigger size for retail traders) trading account, 1 lot equals $100,000 worth of currency. 10 standard lots would equal $1,000,000 worth of currency. On a mini (smaller deposit required) account, 1 lot equals $10,000 worth of currency. 10 mini lots would equal $100,000 worth of currency, or in other words, 10 mini lots is equal to 1 standard lot. Got it?

A pip is the basic unit in a currency quote. If the GBP/USD is trading at 1.9112, then the “2” is the pip — it is the last number in the currency quote. If the price for the pair moves up to 1.9120, then the pair has moved up 8 pips. The value of each pip is dependent on how large your trade is. The table below shows approximate pip values for certain trade sizes.
Amount Traded $ Per Pip
$10,000 $1
$100,000 $10
$500,000 $50
$1,000,000 $100
$5,000,000 $500





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