4m 7s: Lenght

Free Daily Forex Signals & Analysis Subscribe to this Channel and never miss an update!! Become a Standard Member at no cost! Follow me: Twitter: http://bit.ly/2c2aEVL Facebook: http://bit.ly/2cfyx8o Google+: http://bit.ly/2cmuavi If you found this video valuable, give it a like. If you know someone who needs to see it, share it. Leave a comment below with your thoughts. Add it to a playlist if you want to watch it later. Forex Contracts are made up of “Lots”: A standard lot = 100,000 units A mini lot = 10,000 units A micro lot = 1,000 units Most retail forex traders are trading micro lots. Check with your broker. A “lot” describes the currency pair. For example: If EUR/USD price is 1.2500 and you are buying one micro lot, you are purchasing €1000 Euros and selling $1,250 US Dollars. Margin is the amount of cash the broker sets aside to trade a certain number of lots of a forex pair. If a broker requires $20 margin for every contract of EUR/USD and you are trading ten contracts, $200 of margin is required. Margin is subtracted from your equity and what’s left is what you can trade. Margin is money put aside to protect the broker from your losses. If you have $10,000 in an account and your trade requires $2,000 in margin you can lose up to $8,000 on the trade you selected. If your trade loses over $8,000, the broker will execute a “margin call” and close the trade. What was your leverage in that trade? The $2,000 of margin controlled 100 micro lots or $100,000 worth of contracts. Your leverage was 50:1. How much is each PIP worth? What is a PIP? Pip stands for “Point in Percentage.” In a US Dollar denominated micro lot currency pair such as EUR/USD a Pip is equal to $0.10. One contract = $1,000 and 1/10 of 1% of that contract is $.10. In this example a Pip = $0.10 Using the earlier example, If you purchased 100 micro lot contracts of EUR/USD, each Pip would be worth $10. If the trade went 800 pips against your direction, a margin call would be executed by your broker, and you would have lost $8,000. Your broker’s trading application should tell you the cost per Pip and margin required. Now you calculate your leverage and better understand the risk in your trade. Feel free to share this video: http://bit.ly/2cKGp2u Check Out Our Channel: http://bit.ly/2cOU23S Check out our related videos: http://bit.ly/2cOTds2 What is Rollover?, Why is it important? What do I need to know?: http://bit.ly/2cOTds2 Calculating Costs in Forex: http://bit.ly/2cfxLIE Understanding Pips, Margin, and Leverage: http://bit.ly/2cuqCaB The Power of Compound Interest: http://bit.ly/2cmv6Qj Website: http://www.sealionllc.com Learn more about Sea Lion Capital Management: http://www.sealionllc.com/about/ Sign up for our signals service: http://bit.ly/2cpxSpw Contact us: http://www.sealionllc.com/contact/ Standard Disclaimer: http://bit.ly/1SnZd3O