Forex trading can be done for long term and short term. I have told you about the shortest term, that is scalping, but there are a lot of people think that short term is actually scalping, but it is wrong, it is different from short term. Short term do not have any time limit, while scalping has time limit, traders close the trades when it is in small profits or in small loss, this is because they need to chase the lots trading target given by the brokers, this thing happen when they have some kind of deposit bonus or no deposit bonus and the condition that most of the brokers set for withdrawal of bonus will be trading standard lots, so that's why people do scalping.
Most of the brokers do not allow scalping, because they ask traders to keep their trades open for at least 10 minutes then it will be a valid trade, if a trader do not abide this rule, then his trade will not be counted as valid trade, though that trade will be done, but the condition will not meet. Now, the question is what is standard lot? this is a question that most of the traders do not know. Even they are good traders, so I am telling you here that if you open 1$ trade, then it will be your 1 standard lot. If you are opening $0.1 mini lot, then a sum of 100 mini lots will give you one standard lot trading volume. If you are opening trade of $0.10 then ten lots will make you 1 standard lot.You need a lot of money to invest if you want to trade one standard lot, it is not easy to trade with that much size of lot. Because as I told you earlier in my other posts that you will have to invest a big amount of money to trade with $1 lot, this is because when you buy $1 lot, then it will be 100,000 units to buy in forex market. Now, in this condition, you need a big leverage, and its up to your broker that how much leverage he gives you. What is leverage? read from here.
No comments:
Write comments