Aug 28 (edited) in General discussion
0.01 lot = $5, 0.1 lot = $50 1 lot = $500 & ♾️
In the example below from this morning the secured profit was about 50 pips 📈. The goal is to do this every day by taking 1 or 2 trades only.
The lot size calculation. 👇🏼
The value per pip for different lot sizes in forex trading.
1. 0.01 Lot (Micro Lot) : A move of 1 pip is worth approximately $0.10, which means a movement of 50 pips would result in a $5 change (0.10 * 50 = $5).
2. 0.1 Lot (Mini Lot) : A move of 1 pip is worth approximately $1, so a movement of 50 pips would result in a $50 change (1 * 50 = $50).
3. 1 Lot (Standard Lot) : A move of 1 pip is worth approximately $10, meaning a movement of 50 pips would result in a $500 change (10 * 50 = $500).
These calculations align with the typical forex lot sizes and the corresponding pip values. The pip value may vary slightly depending on the specific currency pair being traded and the base currency of the trading account. But for most major currency pairs in a USD-based account, these approximations hold true.
Thinking about the scalability or exponential growth potential with larger lot sizes or leveraging, but it’s important to remember that with increased lot sizes and leverage, both potential profits and potential losses increase. Effective risk management is crucial when trading different lot sizes.
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0.01 lot = $5, 0.1 lot = $50 1 lot = $500 & ♾️
