In our Forex Basics lessons we will introduce you to the basics of trading Forex and CFDs with BDSwiss. The following lessons will provide you with the basic building blocks to help you understand the fundamentals of this fast growing market.
Appropriate position sizing is closely related to effective Risk Management. To understand whether it is best to trade standard, mini or nano lots, the trader must consider several important factors:
Here’ a quick reminder of what different lot sizes mean:
1 Micro lot = 1,000 units of a currency
1 Mini lot = 10,000 units.
1 Standard lot = 100,000 units.
By selecting a different lot size, the trader can determine the amount of nominal currency they want to buy/sell, and thereby, select their desired risk exposure per pip.
A pip, which is short for “percentage in point” or “price interest point”. Effectively, it is the smallest increment by which a currency pair could change at any one time.
For most currency pairs, a pip is 0.0001, or one-hundredth of a percent. For pairs that include the Japanese yen (JPY), a pip is 0.01, or 1 percentage point.
Best Execution - We’ll maintain our commitment to act honestly, fairly and in the best interests of all our clients to offer the best possible execution.
Segregated Account - Your funds will be kept in a segregated account at all times under the FSA’s Client Money rules.
Balance Protection - We will continue to protect your account from a negative account balance.