The position size in forex trading is measured in so-called lot. A whole lot is equivalent to 100,000 units of a currency. For example, if I open a whole lot in the currency pair EURUSD, then the movement of the course by 1 Pip is sufficient to increase or decrease my account by 10 euros. If you now have a small account, you can imagine how quickly this would be wiped out if you are working with such a large position. The values per pip vary slightly from broker to broker, but you can roughly follow the following guidelines:
1 lot = 10 USD (Euro) per pip
1 pole = 1 USD (Euro) per pip
1 Microlot 0.10 USD (Euro) per pip.
As a beginner and trader with a small account, one should definitely find a broker who offers trading with microlots (0.01 lot) in order to keep the losses within limits and to develop a strategy. The following brokers offer trading with Microlots: Admiral Markets, GBE brokers, FXPRIMUS and ActivTrades.
No experience on the stock exchange-can I still go into foreign exchange trading?
Foreign exchange trading is also possible for the absolute newcomer. The basics of trading are identical in every market and can thus be learned in the foreign exchange market as well. The individual forex brokers offer numerous information videos, ebooks, webinars, seminars and tools with which every beginner is introduced in the topic. Additional advantage: Those who master the foreign exchange market and have internalised the fundamentals of technical analysis will also be a much better long-term investor and can tell their friends and family members in advance when they buy their shares better or sell. Please do not believe that you can successfully trade on the stock exchange from today on tomorrow! Like any other profession, the trader’s profession must also be learned from the pike-be it through books, webinars or seminars. This requires a lot of stamina, will and absorption capacity. Or who would come up with the idea of going to the wheel of a Boeing 747 and with 600 passengers loszufliegen without knowing how this works and what all the buttons have to mean? Successful trading is primarily a learning process that lasts about 1-3 years, depending on the ability to learn, curiosity and talent. Some traders claim to have spent about 10,000 hours in front of the charts to become a profitable trader. Apart from the fact that one should, of course, make an additional and further education, there is something true about this thesis. Because the chart is nothing more than a language that has to be read and interpreted long and hard.