You should have an understanding about the aforementioned three words;
Margin, Lot & Leverage. So, let’s see, what are
Lot = $100,000
Mini Lot = $ 10,000
Micro Lot = $ 1000
Nano Lot = $100
The Lot size/volume is an important thing in FOREX trading. We usually measure weights in kg/g, distance in km/m etc. Likewise in FOREX, there are some standard units.
When we start FOREX trading, we have to buy some amount from a particular currency unit according to our preference. There the standard unit; Lot is an important parameter.
There are various types of Lots (like; km, m, cm, mm) as follows;
Among these, the standard unit is Lot and it includes 100,000 of units. So when we decide to open a trade, we have to buy a Lot. Don’t be afraid; let’s see how much will it cost to buy a Lot.
Suppose;
The value of EUR/USD = 1.3000
When you buy a Lot = 1.3000 x 100,000 = $130000
(as Lot = $100,000 $)
i don't have an answer but i was curious to ask what currency you were trading??
Good day all! This here is a forex question and I need answers from people who have trade in real accounts with leverage.
So here it goes: If I were to deposit $1000 to a real account and request for a leverage of 1:100, this will make me have the buy power of having a $100,000 account. Now, if the market was very volatile and I entered a trade where it involves placing a trade of 5 lots of $10,000 AND THEN my current situation is -$1,001 or -$2,000, will my broker immediately cancel the leverage contract because of the first immediate trade being negative?