NOTE:* = All currencies pair except JPY will be Consider at 4th place of digit after decimal. Where JPY will be always considered after 2nd decimal point while calculating pip.
Lot Size: It is the smallest amount/ quantity for exchanging the currencies.
The common size of Lot Volumes are ;
1) Standard Lot: 1 Lot = 100,000 units
2) Mini Lot: .1 Lot = 10,000 units
3) Micro Lot: .01 Lot = 1000 units
Standard Lot (100,000 units) : In 1 Standard Lot 1 pip equal $10 profit and loss. If a trader closes 10 pips profit/loss= 10*10= $100 profit/loss
Micro Lot (10,000 units) : In 1 Micro Lot 1 pip equal $1 profit and loss. If a trader closes 10 pips profit/loss= 10*1= $10 profit/loss
Mini Lot (1000 units) : In 1 Mini Lot 1 pip equal $.1 profit and loss. If a trader closes 10 pips profit/loss= 10*.1= $1 profit/loss
Order Types Terminologies:
It means order at the current market price.
Stop Order and Pending Order(Limit Order):
Orders to open Buy or Sell only the price set is reached or hit.
Buy above Current market price. (Buy order must be HIGHER than current Market price).
Sell below Current market price. (Sell order must be LOWER than current market price).
Buy below Current market price. (Buy order must be LOWER than current Market price).
Sell below current market price. (Sell order must be HIGHER than current market price).
It is borrowed capital to increase potential return. Leverage is commonly available in the ratio of , Example; 1:50, 1:100, 1:250, 1:500
Good Faith deposit required to open an order.
Margin is temporarily held by brokerage until the order is order is closed/settled.
Keep in mind that margin is held by yoor broker until the order is closed.
Right after the position is liquidated, the margin will be credited back to your balance.