The original lot size was 0.01.... Since you're trading micro lots, a 1 pip move equals $0.10 per micro lot. Your position is 5 micro lots, a 1 pip move equals $0.50 . Since you're short EUR/USD, this means that you have a Floating Loss of $40 . With every Mini lot traded (10 000 units) a trader risks to lose (or looks to win) $1 per pip. With each micro lot (1000 units) - $0.10 per pip. In Forex traders always search for the most efficient ways to limit risks or at least lessen risk effects. For this purpose various risk management and money management strategies are created.
I was trading using the minimum lot size (0.01), that means $0.10/pip. So, on the overall, I made around $26 in 2 months. But I was just testing the strategy. I was not trying to make money yet. Now I could go for a big run. At this point, I had a good amount of data that allowed me to analyze the strategy and leverage the lot size. So stick to the micro-lots or nano lots and learn how to effectively trade. If you cannot make $1 to $10 with $100 trading micro-lots, you will not I am assuming that you are a new forex trader because you are investing with such a low amount.
Micro Lot Size (0.01) [1 Pip = $0.10] One micro lot size is equal to one thousand units. This means that if you open a trade position with a lot size of 0.01, You get 1000 units of that currency. Because when you buy 10,000 shares, 100,000 shares, or 5,000 shares, that is pretty much the numbers that you use. But when you are dealing with Forex… Let's say you want to buy 100,000 units (one lot) of AUD/USD. The Aussie against the US dollar is currently at $1.20.
Forex Lots which are also called contracts In Forex, most cases you are going to be operating in lots. Some brokers will operate under units. It is important for you to understand them both. ... 0.10. 10,000. Micro. 0.01. 1,000. What is a Nano lot in Forex Trading? This is more common question among forex traders than some may expect. This amount can go even lower on some occasions depending on the broker. Some will make forex nano trading available for as little as $10. A mini lot is 10,000 worth of currency. A mini lot is 0.1, when plugging size into a forex trading platform. A micro lot is 1000 worth of currency. A micro lot is 0.01, when plugging in position size. Most brokers allow you to trade in any of these lot sizes.
In the forex market, lot is the unit in which a trader buys or sells currency. There are different lot sizes and each lot size has a certain value assigned to it. For example, if you have to buy 10000 units of any currency, you use the lot size of 0.10 And based on this you have profit and losses.
Let us pretend you sold USD-JPY with a 0.10 lot size (mini lot). The price was 111.000 when you entered a sell deal, and it went to 110.000 after that. This indicates that the price has moved 100 pips in your favor, resulting in a profit of $100 on a single small lot. As a result, 1 pip equals $1 with a mini lot size of 0.10. 3. Standard Lot: $10 per pip; Mini Lot: $1 per pip; Micro Lot: $0.10 per pip; Nano Lot: $0.0001 per pip; Wow! As you can see, one nano lot can give you tremendous flexibility to trade even the smallest account. The cost per pip will depend on your broker, so be sure to check with them first.