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RE: What is Leverage & Lot Size And Margin in Forex?

in #moneylast year

Leverage allows traders to control larger market positions with less capital. It is a loan provided by fbs bonus to increase the potential profit (and risk) of a trade. For example, with 1:100 leverage, you can control a position worth $10,000 by depositing only $100. While leverage can increase profits, it's important to remember that it also increases potential losses, so risk management is critical. Lot size refers to the volume or number of trades. There are three main types of lots in forex trading: standard, mini and micro. A standard lot represents 100,000 units of the base currency, a mini lot represents 10,000 units, and a micro lot represents 1,000 units. The lot size determines the value of a pip, which is the monetary expression of the movement of a currency pair by one pip.

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