Many novice investors are not very clear about many aspects of trading knowledge at the initial stage of entry. Before the official opening, due to the consideration of cost and risk, novice foreign exchange investors must understand what is the number of foreign exchange trading hands and what is the minimum number of trading hands on the platform.
What is the number of foreign exchange transactions?
The number of trades refers to the number of orders made by a trader. The standard number of trades in online foreign exchange trading represents 10,000,000. 0.1 lots is the basis of 10,000 lots, and 0.01 lots is 1,000 lots.
Therefore, the amount of money needed for different trades depends on the amount of trading leverage and the specific currency pair.
For example, if your base currency is dollars, the first hand represents $100,000. If your base currency is dollars, the second hand represents 100,000.
Some of the lowest to do a hand, some platforms can be lower, at present the majority of the lowest number of transactions is 0.01 hands.
For example, the minimum number of trading hands in giant Exchange GGFX is 0.01 standard hands. Through the function of leverage, investors can trade a transaction at least 8.
How to Control the number of entry foreign exchange entry is not the number of investors want to trade the number of hands, but to see their online foreign exchange trading position can bear the risk, the number of foreign exchange transactions and risk is proportional to the relationship.
In general, we recommend that the margin required to build a position should not exceed 20% of your total capital, otherwise there is a risk of exploding the position.
For example, the margin required for trading a lot of US dollars is $2.50. If our total capital is $1000 now, it is better not to open more than 0.8 lots, so as to greatly reduce the risk of burst positions.
It can be said that the number of foreign exchange trades and the profit and loss of investors are directly linked to the trading risk. The lower the number of trades, the smaller the volatility, the smaller the trading costs that investors need to pay, and the smaller the profit and loss and risk.
Therefore, for beginners in online foreign exchange trading, it is recommended to choose a relatively low number of hands to trade, 0.01 hands is a good choice, everyone in their own trading ability and experience have been improved before making a greater attempt.
The dollar continued to strengthen, gold hit its highest level in nearly a month, and oil rose more than 7% to reach the 100-mark.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.