let you borrow the rest. When you sell, you will use the BID price. It is one of the prerequisites to get familiar with for. I mean this is a question that if answers well adresse ltc cryptomonnaie by every forex trader would reduce losses they exprience in forex trading. For u to be a good forex trader u must know what lots size means, how to use it to ur advantage and all the reply i have seen here really try their best in answering the question. The difference between.4530 and.4550.0020 or 20 pips. In the example above, the broker required a one percent margin. In the past, spot forex was only traded in specific amounts called lots, or basically the number of currency units you will buy or sell. The 1,000 is NOT a fee, its a deposit.
Lets use another example when your leverage is set at 200:1. For example, if you buy 100,000 against the Japanese yen at a rate of 110.00 and the exchange rate moves to 110.50, which is a 50 pip movement, you have made 500. For example, if the allowed leverage is 100:1 (or 1 of position required and you wanted to trade a position worth 100,000, but you only have 5,000 in your account. Of course, any losses or gains will be deducted or added to the remaining cash balance in your account. Using our formula from before, we now have (.0001/1.4550) x 100,000.87 per pip x 20 pips 137.40 Bid-Ask Spread Remember, when you enter or exit a trade, you are subject to the spread in the bid/ask". Lets just say that you have deposited first 5,000 to your trading account that the leverage is set at 100:1. So when a trader places a trade.10 Lots or 10,000 base units on GBP/USD, this means that he trades 10,000 British Pounds.