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short note on the Forex Lott

short note on the Forex Lott

There are very few Forex traders who do not trade on account of borrowing or margin, and the understanding of trading in the "Forex lot." And croaker or the size of the contract in Arabic is the amount that will be traded, and this is the simple definition of the word. This term is also used in the commodity markets (unless they use the term "car" in the livestock markets, to denote the freight cars, and in the stock markets, they use the term "stock").

You should not be confused with lot of Forex and Forex points, The point is the percentage increase in the movement of a pair of currencies Forex pairs, and have nothing to do in the forex Lott or the size of the contract.
Natural size of the contract
When rolling speaks in Forex and currency trading for Forex Lott, he is usually talking about natural or normal contract sizes. And regular contract sizes are sizes that are traded through an account that has the sidelines enough. Although the account has a high degree of possibility of borrowing, but the trader Forex markets do not like to be in a position where he cannot control his account. It is better to reduce the forex Lott rolling out, that work is done in the face of a lack of margin. It is known that if you make profit from the following trading process, it does not matter how much there is in your account, but you must be prepared in the event of the loss of others deferred.

short note on the Forex Lott

If, in order to give you an idea of ​​'What is a Forex Lott, the natural share is estimated at US $ 100,000 of currency, and when you trade at stake, they at a rate of 1: 100. This means you get a loan from the broker to control the amount of $ 100,000 compared to 1000 dollars your private. As for the achievement (or lose) money, so if you have a standard account at a rate of 1: 100, then for every point you earn their profit by $ 10.
For this kind of deliberative activity, you'll forex brokers generally require an initial deposit of $ 10,000, not everyone has this amount of money, as the Forex leave no one behind. It was in the past restricted to the rich and big financial institutions, banks and individuals, in terms of trading currencies in the Forex market, but that the case had changed.
Minor share
The smaller size of the contract may not be reserved for people who do not have adequate funding, or traders beginner, the professional trader who is trying a new trading strategy may choose to reduce the Forex lot of its own size, and so get used to the new strategy without having to risk the money usually put it in the normal quota.
Most forex brokers need to hold small sizes and at least one being traded. Minor sizes are estimated at $ 10,000, which means you are trading an average of borrowed 1:40. This means that for every point in your favor, you check one dollar profits. This gives a great opportunity for new traders to get to know the real trading versus mode in the demo trading account. And with a little of the degree of risk, it is important to remember always that the trading and if you are trading in large amounts, as the dollar does not seem as if a lot of money, causing many traders to do some third-party risks are necessary, but those dollars are clustered, and in a short time be serious sums.
Lots District
Some Forex, Forex trading through partial Lott. And is a 10 cents compared to one point, and if you have a few hundred dollars, and would like trading in Forex, the micro size of the contract is right for you quotas. If it succeeds, you have enough time to develop.

short note on the Forex Lott

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