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Forex trading knowledge how to understand the number of lots in forex trading

Many cashback forex 100%cashbackforex novice in the early stages of the introduction, for many aspects of cashbackforex knowledge forex cashback easy not very clear, before the formal opening of foreign exchange trading, for cost and risk considerations, foreign exchange novice investors must understand what is the forexcashbackeasy of cashbackforexpip of foreign exchange trading, as well as the minimum number of trading platform is how much and other issues What is the number of lots of foreign exchange trading?  Trading lots is the number of traders to do a single, online forex trading a standard lot represents 100000 base currency, 0.1 lot is 10000 base currency, 0.01 lot is 1000 currency units, because the value of the currency is different, the exchange rate changes in real time, the margin will also be increased or decreased at any time, so for different trading lots how much money is needed, the investor also according to the trading leverage For example, your base currency is the U.S. dollar, then a lot represents 100000 U.S. dollars, if your base currency is the euro, then a lot represents 100000 euros Some foreign exchange platform minimum to do a lot, some platforms can be lower, at present the vast majority of online foreign exchange trading platform minimum trading lot is 0.01 lots such as the giant exchange ggfx minimum trading lot The minimum trading lot is 0.01 standard lot, through the role of leverage, the investor can trade a minimum of $ 8 How to control the number of lots of entry The number of foreign exchange entry lot is not how many lots the investor said he wanted to trade on how many lots, but to see their online forex trading position can bear the risk, forex trading lot and risk proportional relationship Usually, we recommend that the margin required to open a position is best not More than 20% of their total funds, otherwise there is a risk of position explosion For example, we trade 1 hand USDJPY requires a margin of $2.5, if our total funds are now $1000, then it is best not to open a position of more than 0.8 hands, which will greatly reduce the risk of position explosion It can be said that the number of lots of foreign exchange trading and investors profit and loss is directly linked to the risk of trading, the lower the number of lots traded The lower the number of lots traded, the smaller the fluctuations, the smaller the transaction costs that investors need to pay, then the profit and loss and risk is smaller Therefore, for newcomers to online forex trading, it is recommended to choose a relatively low number of lots to trade, 0.01 lots is a good choice, we in their own trading ability and experience to improve before making a bigger attempt