Bonus 100% CRYPTO
Bonus 100% CRYPTO
increase your deposit twofold
Double your deposit when making a crypto-payment!
We mentioned earlier that trading volumes are standardized and calculated in lots in financial markets. One standard lot in the Forex market amounts to 1,000,000 (one million) units of the base currency. For example, if we are talking about EURUSD, in a purchase transaction, 1,000,000 (one million) euro will be purchased for the respective amount of US dollars. So, at the purchase price of 1.38997, 1,389,970 US dollars will be required to purchase one million Euros.
Several lots form together a total trade amount. For example, 10 lots is the amount equivalent to 10,000,000 (10 million) items of the currency we need to buy. Brokerage companies also provide an opportunity to operate with fractional (mini- and micro-lots). In particular, the LiteForex Company considers 100,000 as a standard lot and allows traders to open a transaction of 0.1 lots (10,000 units) and 0.01 lots (1,000 units).
Now let’s have a closer look at what a buy-sell transaction is. Every transaction (also called a “round turn”) consists of two counter transactions: opening and closing. When we close a transaction, we perform an operation that is opposite to the opening. For example, if the first transaction is a purchase, then it will be closed with selling, and vice versa: if the first transaction is a sale, then it will be closed with a purchase. We are going to study this subject more thoroughly in the paragraph 2.1. “Price and Spread” in the Section “Technical Analysis”.PrevNext
Forex transaction plans
Transaction plan is a well-defined strategy of expectations and risk management in the market with...20.11.2016
Types of forex accounts
1000 lots forex is one of the top demands by traders in the market today. This demand has been disc...20.11.2016
Lot sizes in forex trading
Fx 10000 lots unit is one of the lot sizes in which fx is traded. There are four different lot size...20.11.2016
Forex lot volume
Fx lot volume is the number of shares or contracts traded in a security or an entire market during...20.11.2016
Forex max lot
Forex max lot can be explained as the different currencies in the historical period are determined...20.11.2016
How to choose a lot size
What is forex lot size? 1 lot size has been observed to be differently used by different brokers. O...06.11.2016
Forex transaction types
Are you thinking of investing in the fx market? Do you know its various types? Well, as a beg...06.11.2016
Retail forex transaction
Have you ever wondered why retail trading is getting so much popularity? Well, when I started as a...05.11.2016
Forex micro lot
It is evident that most of the newbies to forex trading business are the ones available with littl...