# Lot Sizes / Strategies

##### Recruit
Hey guys,

Could someone please give me a quick, simple explanation (no lengthy outside links please!) on how lot sizes work? I always seem to get myself confused every time I want to trade, and the lot sizing concept actually discouraged me to get my feet wet a long time ago, though I am very good at technical analysis. I'm planning on getting back into forex.

What about strategies and time frames? It seems to me that logically, forex needs to be traded on higher time frames due to the automatic spread.

I would really love to hear your input.

Regards,

Z

Hey guys,

Could someone please give me a quick, simple explanation (no lengthy outside links please!) on how lot sizes work? I always seem to get myself confused every time I want to trade, and the lot sizing concept actually discouraged me to get my feet wet a long time ago, Z

1 lot for currencies means 100 000 units of base currency.
Example: Let's say now GBPUSD 1.55 (1 pound=1.55 USD). You buy 1 lot GBPUSD. That means you buy 100 000 pounds and sell 155 000 USD.

1 lot for Gold means 100 ounce
1 lot for Silver 5000 ounce

It seems to me that logically, forex needs to be traded on higher time frames due to the automatic spread.

Agree with you.

And minilots are 10,000 units, microlots are 1000 units, nanolots are 100 units, picolots are 10 units.

For xxxUSD, a 1 pip move on 1 lot is \$10. For minilots, it's \$1. I'm sure everyone can do the math on the rest.

And minilots are 10,000 units, microlots are 1000 units, nanolots are 100 units, picolots are 10 units.

For xxxUSD, a 1 pip move on 1 lot is \$10. For minilots, it's \$1. I'm sure everyone can do the math on the rest.

Oh my gosh, I learned something today. I really don't know what is nanolots and picolots. Thanks for sharing.

I do trading with mini lots. As I am having just \$200 in my trading account \$1 for each pip will be a great risk for me. TO avoid this risk I try to trade in low lots . I make low profits from this strategy but it is quite safe rather than loosing dollars in just few pips.

Hey guys,

Could someone please give me a quick, simple explanation (no lengthy outside links please!) on how lot sizes work? I always seem to get myself confused every time I want to trade, and the lot sizing concept actually discouraged me to get my feet wet a long time ago, though I am very good at technical analysis. I'm planning on getting back into forex.

What about strategies and time frames? It seems to me that logically, forex needs to be traded on higher time frames due to the automatic spread.

I would really love to hear your input.

Regards,

Z
One standard lot (1.0) equals the position of 100 000\$.
So lots less than 1.0 are subject to fractional parts rule for example 0.01 lot means 0.01*100 000\$ = 1000\$ position.
For 1.0 standard lot one pip value is 10\$

I do trading with mini lots. As I am having just \$200 in my trading account \$1 for each pip will be a great risk for me. TO avoid this risk I try to trade in low lots . I make low profits from this strategy but it is quite safe rather than loosing dollars in just few pips.

\$1 per pip for \$200 means you possibly only have 100 pips or so (keeping slippage and margin requirements in place) worth of capital before you get wiped out.

Unless you are doing forex for gaming entertainment (which 98% of retail participants do), I would advise against 0.1 lots for a \$200 deposit.

\$1 per pip for \$200 means you possibly only have 100 pips or so (keeping slippage and margin requirements in place) worth of capital before you get wiped out.

Unless you are doing forex for gaming entertainment (which 98% of retail participants do), I would advise against 0.1 lots for a \$200 deposit.

I would say that we must have a good trading balance and this is also a reason why we have to maintain good amount of trading funds with us

\$1 per pip for \$200 means you possibly only have 100 pips or so (keeping slippage and margin requirements in place) worth of capital before you get wiped out.

Unless you are doing forex for gaming entertainment (which 98% of retail participants do), I would advise against 0.1 lots for a \$200 deposit.
0.1 lot is too much I think When I was newbie I was using 0.02-0.04 at MMYYBBRROOKKEERR and never break that rule. That's why there is no a single wipeout in my trading history, just 40% drawdown..

0.1 lot is too much I think When I was newbie I was using 0.02-0.04 at REMOVED and never break that rule. That's why there is no a single wipeout in my trading history, just 40% drawdown..

If we are going to have more draw-down in our trades then our trading is considered to be risky and that will lead us into losses in the coming times

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