Lot and lot size...

[StefGrig]

Buying and selling operations are made by lots. The bigger the lot size, the higher the profits... And the risks too.

There will be periods where you will have to wait for the trend to revert - i.e. you have placed a buy order but the trend is going down and you are temporary at a loss. This is a normal situation that happens all the time, do not worry about it!

Actually the main thing you should worry about, is your lot size... There is only a limited amount of money in your account, and if your lot size is set too high, a temporary (I insist on that term) draw-down could wipe it out before you get back into a profit.

By reducing the lot size, you will make smaller operations, and you will therefore be able to survive to bigger draw-downs. Supposing that you are doing only 1 trade at a time, and according to my experience, the right lot size would be:

Mini-account of $1000: 0.1.

Mini-account of $3000: 0.2.

Mini-account of $5000: 0.5.

Account of $10,000 and more: 1.

Always try to remain reasonnable - a bigger lot size would make more profits, but where's the profit if your account gets wiped-out and you can't trade anymore?

Please be free to share with us your experience, ideas and knowledge....

[panda1]

for me i like micro account cuz you dont lose alot of money i case of losing or u still a new to forex

and always try to lower the lot size this will maek your job easier

[Andreas Zweck]

Lot size is very important by dealing with forex. If you are a forex beginner, you are starting with micro lot size. Forex experts are able to work with standard lots.

Edited January 20, 2012 by Andreas Zweck

[Estella]

Currencies are traded in fixed contract sizes, specifically called lot sizes, or multiples thereof. In a trading market however, currencies are offered for sale at an offering price, the ask price and traders looking to buy a position seek to do so at their bid price, which is always lower or equal to the asking price.

Trade Forex | Forex Analysis

[Andreas Zweck]

This is also depending from the knowledge and experience of the trader. New trader will choose micro lot accounts because they can start with 1 $ and 1:100 leverage. Experienced traders will choose standard lot accounts with higher deposits and lots. But forex professionals will choose big lots because they would like to deposit high amounts and choose the right leverage to generate high pips.

[Guest Dominator4fx]

This is also depending from the knowledge and experience of the trader. New trader will choose micro lot accounts because they can start with 1 $ and 1:100 leverage. Experienced traders will choose standard lot accounts with higher deposits and lots. But forex professionals will choose big lots because they would like to deposit high amounts and choose the right leverage to generate high pips.

When the amount of deposited funds is High then we must use a lower leverage. For any funds above 1000$ the leverage should not be more than 1:50

[Ramon Ramirez]

Lot size is very important by dealing with forex. If you are a forex beginner, you are starting with micro lot size. Forex experts are able to work with standard lots.

Yes i agree to you!! :)

[Peter Brandley]

Buying and selling operations are made by lots. The bigger the lot size, the higher the profits... And the risks too.

There will be periods where you will have to wait for the trend to revert - i.e. you have placed a buy order but the trend is going down and you are temporary at a loss. This is a normal situation that happens all the time, do not worry about it!

Actually the main thing you should worry about, is your lot size... There is only a limited amount of money in your account, and if your lot size is set too high, a temporary (I insist on that term) draw-down could wipe it out before you get back into a profit.

By reducing the lot size, you will make smaller operations, and you will therefore be able to survive to bigger draw-downs. Supposing that you are doing only 1 trade at a time, and according to my experience, the right lot size would be:

Mini-account of $1000: 0.1.

Mini-account of $3000: 0.2.

Mini-account of $5000: 0.5.

Account of $10,000 and more: 1.

Always try to remain reasonnable - a bigger lot size would make more profits, but where's the profit if your account gets wiped-out and you can't trade anymore?

Please be free to share with us your experience, ideas and knowledge....

Lot size do account in forex trading. It is important to have an account size which you can trade lot sizes which you're happy with. If you NEED to be trading $1 a pip to be satisfied, make sure your account is big enough for that kind of leverage.

To be successful save your money and save up so you can open up a larger account

Edited June 13, 2012 by Peter Brandley

[Tanzil Al Banna]

I know discipline is very important issue here, so I am well determined to use fixed trading lot size in my live trading. Sometimes, I get very good entry point but I never break my trading rules. On the other hand, I also get fixed trading spread of TradingBanks that also helps me to be a disciplined Forex trader.

[ForexMartTrader]

While considering your lot size, it is also wise to consider your stop loss.  You can even sustain more loss from large stop loss than a bigger lot. So it is important to apply prudent money management according to you available trading capital as well as skills level.