Lea |
A standard lot is a leverage (risk) you take on per contract. Each "standard" lot equals approximately $10.00 per "pip" ( price interest point) the currency moves. For example, if you risk 10 pips to make 10 pips ( 1:1 risk/reward ratio) , you are risking $60.00 to make $60.00. Mini lot is 10 times smaller ( $1.00 per pip) and a micro lot is 100 times smaller ($. 10 per pip)
I hope it is helpful!
Friday, 11th September 2009
Sources:
Www.fxuniversity.org |
