What is Lot/Volume?
Here is some discussion about lot/volume:
The lot is a lot easier. But when you go as a unit, it will seem complicated to you. So I will not go here as a unit but try to explain in a simple way. In the #Forex market we can profit from every pips movement. In other words, if the price goes from 1.1010 to 1.1020, we will have a gain or loss of 10 pips. By lot/volume we will determine how much profit or loss we will get if every pips go in our favor or against us.
We are dividing #Forex brokers into 3 parts for convenience.
Standard Lot Broker
Mini Lot Broker
Micro Lot Broker
1 lot in standard lot broker = $ 10 / pips. But in mini lot broker 1 lot = $ 1 / pips. And 10 lot = 1 / pips in micro lot broker.
So, if you open a trade with 1 lot on a standard lot broker and 10 pips go in your favor, your profit is $ 10x10 = $ 100. Even if there is a similar loss, it will be $ 100.
But, if you open a trade with 1 lot on a mini lot broker and 10 pips go in your favor, your profit is $ 1x10 = $ 10. Even if there is a similar loss, it will be $ 10.
And, if you open a trade with 1 lot on a micro lot broker and 10 pips go in your favor, your profit is $ 0.1x10 = $ 1. Even if there is a similar loss, it will be $ 1.
Standard Lot Broker:
1 standard lot = $ 10 / pips
0.1 standard lot = $ 1 / pips
0.01 standard lot = $ 0.10 / pips
10 standard lots = $ 100 / pips
Mini Lot Broker:
1 mini lot = $ 1 / pips
0.1 mini lot = $ 0.10 / pips
0.01 mini lot = $ 0.01 / pips
10 mini lots = $ 10 / pips
Micro Lot Brokers:
1 micro lot = $ 0.10 / pips
0.1 micro lot = $ 0.01 / pips
0.01 micro lot = $ 0.001 / pips
10 micro lots = $ 1 / pips
Surely you understand the difference between a standard lot, mini lot, and micro lot. Brokers adjust the lot size as per their convenience. Most brokers will allow you to trade a minimum of 0.01 lots. That is, you can get a minimum pip value of 10 cents at a standard lot broker. But in Mini Lot Broker you can get the minimum pip value 0.1 cents. And in Micro Lot Broker you can get the minimum pip value of 0.1 cents. So if your capital is low, you can trade with low risk in the mini lot or micro lot brokers. Not only can you trade 1 lot, 0.1 lot, or 0.01 lot, you can also trade 2.5 lot, 1.3 lot custom lots if you want.
How do I know if my broker is a micro-lot, mini lot, or a standard lot?
You can trade in micro-lots on the micro account of #TradingPoint. If you don't know if your broker is a micro lot, mini lot, or standard lot, then ask the broker's live support. Many times it is also given on their website. Or open a demo account with them and open a trade with 1 lot. If you see that there is a profit or loss of $ 10 per pips change, then you understand that it is a standard lot broker. And if you see that $ 1 is changing, then you understand that it is a mini lot broker. If you change it by 10 cents, you will understand that it is a micro lot broker. But some brokers have different lot sizes for each account type.
CFDs and leveraged products, in general, carry a lot of risks, and yours
There may be a possibility of losing all the invested capital.
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A lot of traders feel they aren’t too different from an animal on the Sahara hunting their pray. Just like the hunting animal knows there are certain environments where they are more likely to score their next meal the trader favors certain set ups before entering a trade. This article will walk you through the environment on the charts that will yield the higher probability candlestick set-ups. You will also be introduced to merging pivot lines that work well with candlestick charting.Trading by CandlelightCandlestick charting is a method of displaying price action so that you can readily see the battle and winner of buyers to sellers to obtain distinctive trading signals. Candlestick trading has been around for centuries and has been introduced to the Western world within the last few decades.There are many individual candlesticks and candlestick patterns that can tip you off to a new move. Common formations are the doji, the shooting star, and the hammer. To get a better handle on different patterns, Daily FX has a course to help you grasp different candles formations to assist your trading.Combining Market Type with Candlestick SignalsFirst, it’s important to note that a market is either in one of two common environments. Either a range bound market with price bouncing between support and resistance. This is the most common market environment. The other market that trader’s find themselves in is a trend with price showing higher highs and higher lows in an uptrend or the opposite in a downtrend.Trending Market: Ranging Market: Here is the first rule for candlestick entries that we want to focus on once the market type has been identified.-When in a range bound environment, we want to focus on candlestick formations or patterns near support or resistance for entries. Support and resistance can be identified by eyeing price action ceiling and floors or by adding Pivot Points to the charts.-When in a trending environment, we want to focus on candlestick formations or patterns near pull backs in the direction of the trend for entries.In addition to Pivot Points, we can also look to common indicators like the 200 period moving averages to help us pinpoint candlestick patterns around key prices in the market.Pivot points are a famous indicator to help you forecast future points of resistance and support to limit risk and find profit targets.The Pivot number is the high, low, and close added up and then divided by three.P= (H+L+C)/3= pivot pointThis is easier than it sounds because it will be a default indicator you can add.Once the Pivot Levels are added along with a major moving average, we will look for price action to move to one of these levels. That is when we’ll heighten our attention to patterns that develop to see if a reversal is upcoming or a continuation is shown. On the AUDUSD, 2 hour chart we see price respect and move off of the monthly pivot price. We also see additional action around the 200 day moving average that confirms the bounce of the Resistance line (green) back down to the monthly pivot line. There is nothing predictive about the Pivot Lines except the fact that many traders look to them in placing profit targets, stop exits or deciding when to stop buying or selling into a move. This gives Pivot Lines a bit of a self-fulfilling power. As you add these lines onto the charts, you see that price often respects these lines in either reversing from them or showing a strong continuation off of them.Here is the USDJPY, 2 hour chart which shows price bouncing off the pivot and rushing up to the Resistance 1 line. The take home message is that you can look to Pivot Points and a large period moving average for reversal or continuation signals and then set your stop below the signal and your profit target near the resistance or support line. This will ensure you keep good risk management while hunting for higher probability entries.Happy Trading.