Basic Lot Volume Calculation In Forex - Kakiforex.com - Financial Market Media No. 1 in the World Basic Lot Volume Calculation In Forex Basic Lot Volume Calculation In Forex

March 24, 2021

Basic Lot Volume Calculation In Forex

 Before I show you how to enter a BUY or SELL position, I need to remind you there are two things.


Profit is calculated based on how much Pip you earn.

The Pip Value is determined by you with the Lot Volume Value that you set when you want to enter an order either BUY or SELL.

Each time you enter a BUY or SELL order, your price value will be deducted by SPREAD

The SPREAD value is set by the Broker and it varies according to the PAIR

How to determine Lot Volume?


The Lot Volume value is as follows for the USD -backed pair. For example EUR/USD, GBP/USD, AUD/USD. Below are the standard values ​​for "Lot Volume" for most brokers.



The spread is the difference between the Bid and Ask prices. You can see the Bid and Ask prices on your Market Watch. Some brokers charge fixed spreads and some charge variable spreads. Spreads can also be considered as commissions charged by the broker to us.


For example, if the Spread for the EUR/USD pair is worth 2.5 pips. So let's say you enter BUY EUR/USD at the price of 1.30000, you will get the price of 1.30025, slightly above the price you entered earlier. The difference is called the spread.


If you enter SELL EUR/USD at the price of 1.30000, you will get the price of 1.29975, slightly below the price you entered earlier.


 


Continue studying the next chapter.