Forex Trader: Beginner education

[tradeforex077]

If you dont understand pips, lot size, leverage etc then try these previous threads.

Lots - Need Help understanding formula

Hi, Let me start with a link to the school lesson that has you feeling “ugh”. In the USD/JPY example, 0.01 does not refer to 0.01 standard lot. It refers to one pip in a yen-pair. Let’s review a couple of things, just to make sure they’re clear. In yen-pairs, the second decimal place represents single pips, the first decimal place represents tens of pips, and so forth. In the school lesson, USD/JPY = 119.80. In this price, the zero (in the second decimal place) represents 0 pips. The …

Lot size and Leverage?

Hi all, thanks in advance for your time. I’m currently in the early stages of learning how to trade forex on a Demo Account and I’m just looking for some guidance to confirm I am on the right track in my learning if possible? My account is in GBP with a 500:1 leverage. (Which from my understanding, if I had say a £100 account. £100 x 500 = £50,000 but i struggle to understand why and how i could control that amount of money with such a small account size? I understand a 0.01 lot = 10p…

Price per pip calculation

Hi all, newbie with a probably dumb question here. I’m struggling to work out how much the position I’m taking is costing in my account base currency. So for example I want to work out how much a particular amount of units translates to in Euros per pip. I know Oanda kinda does this for you but I’m using xm. What calculation do I need to get to the magic number? Thanks

Margins....leverage etc

I was just wondering if its possible to trade without margin? If I open a $100,000 account for example then to trade one single lot the value is $100,000 anyway so wouldn’t need any leverage right? My understanding (obviously I’m a seriously new newbie) is that with a $10,000 account for example, to trade one single lot that is $100,000 with leverage. The reason I ask is that if I don’t use leverage then I can’t possibly get a margin call which means I can leave positions open longer if needed. …