Naturally, in the event of an unprofitable closing of a deal, when the price has risen rather than fallen, the broker compensates for its losses at the expense of the margin and funds in the trader’s account.
There is another concept on the currency market that is misleading for beginners: lot . When making an order to buy/sell a currency pair, the size of the transaction is specified in lots – basic Forex units. 1 lot is equal to 100,000 units of the base currency, and this is the minimum transaction size on international exchanges.
Using the example of the USDJPY pair, in which
US dollar is the base currency middle east mobile number list and the Japanese yen is the quoted currency, when buying 1 lot we will receive $100,000, and when selling – approximately 10,000,000 Japanese yen (the amount is always calculated based on the base currency, the price of the Japanese yen is approximately $0.01).
Of course, not every trader has 1 lot needed to enter the stock market. That is why there are Forex dealing centers that provide the opportunity to trade fractional quantities. They combine many small transactions into one large one and conduct it on the market.
There are two types of fractional lots: mini-lot
Equal to 0.1 lot, micro-lot, equal to 0.01 lot, and nano-lot, which is only 0.001 lot. It turns out that when concluding steps down a deal in 1 micro-lot $, the transaction amount will be $1000, and taking into account the leverage of 1:500, the broker will only need $2.
Where does trading begin?Now that we have learned how trading on the Forex market works, it is time to take a break what are the latest trends in e-commerce seo? from the technical terms and legal language adb directory of Internet trading. Let’s think about what the steps down profession of a trader is outside the window of a trading terminal and how not to stumble at the very beginning of the path.