What is the “hand” in 1.
The number of lots is the number of contracts per trade.
The number of hands is not the same as the number of shares.
In trading, “one hand” is short for “one standard hand” and is a standardized contract representing a transaction of 100,000 units.
In addition, there are mini hand, micro hand, micro hand.
The minimum volume of forex pairs is 0.01 lots.
The minimum trading volume of stock index class, futures class commodity is 1 hand.
2. What is the basis point?
The smallest unit of measure of change in the course of volatility is called the basis point.
For example: the quote is the fifth decimal place, then 1 basis point is 0.00001;
HGCOP is quoted in the fourth decimal place, so 1 basis point is 0.0001;
The quotation is in the third decimal place, then 1 basis point is 0.001;
GOLD is quoted at the fifth decimal place, so 1 basis point is 0.01;
CHI50 is quoted in single digits, so 1 basis point is 1.
So how do you calculate the point value of 1 basis point?
Formula: Basis point value = number of lots * Minimum range of fluctuations *1 lot value By calculating the point value, we can get the profit and loss of the trade.
3. What is leverage?
Foreign exchange trading is margin trading, which means that large transactions can be made by paying a certain amount of margin in proportion.
The proportion used is called leverage, and the platform makes up the shortfall temporarily during trading.
For example, if you have 10,000 in your account and choose 100x leverage, you have $1,000,000 trading.
4. When taking a position, that is, going long or short, you will find a small loss in your account at the moment you take the position, in addition to the margin deduction.
Moreover, when the exchange rate does not fluctuate, such losses are fixed and cannot be eliminated.
This loss is the point spread.
The point spread is the difference between them.
For traders who have registered for standard or micro accounts, the spread is a trading cost to be paid when trading on the platform.
Each order is deducted only once, and it is deducted immediately when the position is established.
The dollar rose, gold fell sharply after hitting 1,820, and oil rose for a fifth straight day.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
