How to Count Lot and Minimize Trading Losses

In forex trading, of course, traders are familiar with the terms profit and loss, which are terms used to calculate profit and loss. To be able to calculate profit and loss, the terms majer rate and cross rate are used. A lot on forex or on an exchange is a unit of measure for position volume, a fixed amount of the base currency in the forex market. Volume is always indicated in lots and the lot size directly affects the level of risk. The bigger the volume of one lot in forex, the bigger the risk. Risk assessment or risk management includes models that allow traders to calculate the optimal standard lot size on the foreign exchange market based on the estimated level of risk, volatility (stop loss level) and leverage.

The size of the lot will determine the size of the transaction that can be made on the forex market. If the number of lots is large, the capital or equity owned must be large and the profit or risk of loss is also large. In general, brokerage companies will provide regular account services and mini accounts, and every buy and sell transaction. The easiest way to calculate lot values is to use a calculator. These calculations are important for optimizing the position volume in relation to the deposit amount taking into account the risk, as well as balancing trades. In addition, proper lot selection and placement of an increase in positions will make it possible to choose a trading mode.

The number of lots or known as position size has two sides. A large position size can provide multiple advantages, but can also cause painful losses. Multiple profits can come if the position is taken in the direction of market movement, but losses can occur if the position is taken against the direction of market movement.

Watch the full video and details below!


More info : 

Free material soft copy contact 081 258 066 174 wa/call 

Private info / paid premium class (guided forever until consistent profit and independent). 

Whatsapp/call 081 233 593 672 Or direct access to our web www.wijayatrading.com

Comments

Popular posts from this blog

Tingkatan Seorang Trader

SNR, BEST TRADE STRATEGY!