What is a Forex Lot Size?

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Just so that you do not waltz into the forex market and demand to buy or sell ONLY ONE dollar or two, the industry has ‘standard sizes’ of currency that a trader can buy or sell at any one time to (a) Make trading profitable and worthwhile for all parties involved and (b) Make the calculation of profits, losses and total trades easier.

A standard forex lot, also called 1 lot, represents 100,000 units of the base currency. For example, if you are buying 1 lot of the EURUSD currency pair you are actually putting 100,000 EUROS (EUR is the base currency here) into the market.

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What is Forex Spread?

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As a forex trader, you should always have one eye on spreads. When picking a forex broker you should, before anything else, check to ensure they have the smallest spread, mostly single digits below 5.

In today’s forex market, most brokers do not charge commissions for trades or deposits/withdrawals. So, how do forex brokers make money? Through forex spread.

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What is a Forex Pip?

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Simply put, a forex pip is the smallest price change that a currency pair can make. More precisely, a pip is the change in the fourth digit in a forex quote. Let us look at an example. If you buy the EURUSD pair at 1.3902 and sell it at 1.3905, you have made a (5-2) 3 pip profit, otherwise known as a 3 pip win. On the other hand, if you buy at 1.3640 and sell at 1.3634, you have made a 6 pip loss. I hope you can calculate and see how we have arrived at that figure.

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Types of Forex Traders in Kenya

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Any Forex Trader you meet whether in Kenya or anywhere else in the world for that matter, will fall into one of these 3 categories. Based on your individual resilience and abilities, you can pick whichever trading style that best suits you and make a fulfilling, enjoyable and life altering full time or part-time career out of it.

These are the 3 types of traders that we have in Kenya, Namely, Scalpers, Day traders and Swing traders.

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What is Forex?

whatisforex

Hello, and Welcome to the Wonderful and Immensely Profitable world of Online Forex Trading. You might have heard someone introduce themselves with the Prestigious title of ‘I am a Forex Trader’, or you might have seen one of your friends rake in tonnes of cash over a short period of time after starting to ‘Trade Forex Online’. “How can I Trade Forex, too?” You must have asked. Don’t worry, I will show you how 🙂

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