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Balance and Lot size

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  • Balance and Lot size

    Hello there!

    Some of you might laugh about this basic question, but i didn't get it so far as it seems. Maybe somebody could push me into the right direction with this.
    To get started: (i think) i know what a lot (mini, micro, nano) is. Let's assume i follow a signal provider on

    Person A has 5000€ in his balance.
    Person B has 10.000€ in his balance.
    A trade is opened and closes either positive or negative. What is the "multiplicator" based on the current balance depots per trade in this example for A and for B? As far as i know when the signal provider trades e.g. 0.07 lots this is 7.000€ (or USD or ...). Or am i wrong with this? Assuming that 1 lot is 100.000 units of a given currency?!

    I AM something missing for sure...

  • #2
    My initial trading balance was below 1K, so I was unable to use standard trading lot size! By the way, as a retail Forex trader I wanted to consistent money here whatever the size of feedback is! This process really helped me to grow my trading account! Yeah, it wasn’t a quick process but now my trading equity is 5K, so ibelieve traders need to select their trading lot size based on their equity!


    • #3
      In Forex, 1 standard lot means to a volume of 100.000 units. So when you buy 1 lot of a forex pair, that means you purchased 100.000 units from the base currency (the first currency appearing in a forex pair). For example, assume that the EUR USD exchange rate is 1.30 When you buy 1 lot of EUR USD you will be making $130,000 worth of purchase. For more, you can look at what is Lot in Forex.