Lots, Margins, Leverage and Pips

Today's lesson is an important one. After this lesson, we can look at practicals. So let's get started. In the last lesson, we learned about currency pairs. The currency in front of a currency pair is called the base currency and the currency in the back is called quote currency. It can also be called counter currency. Consider an example. EUR / USD = 1.235 In here, Base currency: EUR Quote currency: USD Okay now, let's see what "Lots" are. Imagine we go to the market and buy potatoes, so how do we get the potatoes? are we count potatoes? No, we buy potatoes per kg or g. Like that in the forex market, we say unit of currency is a "lot". "Lot" is called a standard lot. A lot is always 100,000. There are lots of mini-lots, micro-lots, nano-lots like gram and kilogram. Lot (Standard Lot) 100,000 Mini Lot 10,000 Micro Lot 1,000 Nano Lot 100 ...