Short instructional video by Alan Solarsh explaining Forex lot sizes: defines a standard lot as 100,000 currency units, gives an EUR/USD example, and explains cent accounts and micro-lots (e.g., 0.01 lots) using gold as an example. The video shows how lot size multiplies price movement to compute profit/loss (lot size × price movement).
This video tutorial explains to you what a lot size is. So what is a standard lot in Forex? A standard lot in Forex Is equals to 100,000 currency units. It's the standard unit size for traders, whether they're independent or institutional. Example if the Euro US Dollar exchange rate was 1.31 standard lot of the base currency Euro would be 130,000 units, which is equals to $100,000 $130,000. Okay, so a lot of words again that mean nothing for you as the trader. Basically a lot size. A let's talk about what we trading. So if you trade 0.01 lots, it's like 0.01 portions of a a bale of hay. Okay? In our case, our bale of hay is gold. So we're trading 0.01 cent lots of a bundle of hay. Okay? So a cent account is very different to a standard account. It is 1/1,000th of the value of a standard account. Alrighty, so our account works in cents, not in dollars. Alrighty, so, so a little bit different, more difficult to understand. As we go down this rabbit hole of forex, things seem to get a little bit more and more complicated. I'm here to try and navigate that and to help you to make things a little bit easier, not more difficult. So when we talk about when the price goes up here, 0.02 cents in.
On gold, on a 0.01 lot size, your account is is affected. One pip is equals to 1 US cent, provided you're using a lot size of 0.01. So if the price increases by 1 cent and you're using a lot size of zero point zero one, it means that you're either going to win or lose 0.01 cents. If you use a 0.02 lot size and the price goes up by 1 cent, it means that you will be losing or winning 2 cents. So it's your lot size times the movement in dollars and cents will tell you how big a trade you're either making money or losing money on the specific pair you're trading. So I hope that that's easier for you to understand. Please like subscribe and comment on my videos so that you don't miss any other videos that we come out with and that you're in touch with us all the time. So like subscribe and comment and I'll see you on my next video.
Double bottom forming - Gold ready for $4000 #trading #technicalanalysis #xauusd
