Contract size

You know that all goods and services bought and sold on the basis of fixed units.We buy meat and unit sold is the kilogram.And buy gold and sell it is the unity of love.It is rare that one buys a commodity or service without the unit sold because it makes the arithmetic a little bit complicated as well as it is not uncommon.And currencies are bought and sold on the basis of fixed units also called Unity LOT.A minimum can be traded in the currency market.LOT: is the minimum can be traded in the currency market and can not trade without it or Bamadaafath.You can buy a lot of euros or 2 or 3 Lute Lute Lute, or 20 ... Etc.But "You can not buy a lot and a half or a quarter of Lott, but only in multiples of croaker.But how much of the lot is equal to the euro or any other currency?Varies depending on the brokerage firm that will deal with them ..Value is called the equivalent of-Lout currency contract size.In spite of that lot size varies from company to company but the lot size for most brokerage firms now is 100.000 units of the base currency.What does this mean?This means that when you buy a lot of requests euros will buy 100.000 euro and will pay the price in U.S. dollars as the price at the time, because the euro is the base currency against the dollar.When required to purchase Lot 100.000 pounds will buy and will pay £ - sold - against which the U.S. dollar as the price at that time.But when asked about buying yen will buy a lot of yen, the equivalent of 100.000 U.S. dollars because the dollar is the base currency against the yen. And when requested by selling yen Lott sold the equivalent of $ 100.000 yen.As well as for the Swiss franc Ftdma lot of requests to buy Swiss francs will buy the equivalent of $ 100,000 and sold the equivalent of $ 100,000 of the franc in the case of sale where the franc that the dollar is the base currency against the Swiss franc.In any case if you have difficulty in understanding what we explained, do not worry ..!!Because what is important will know after a few ..PIP valueImagine that there is a dealer who has a commodity for the transfer of hours alarm imported from abroad at a cost of $ 10 per hour, it no doubt must sell at a higher price from $ 10 to turn a profit .. but how many will make a profit?This depends on the profit margin of any difference between the sale price and the purchase price.If you decided to sell one-time price of $ 15 per hour and he had 1000 hours, he will gain $ 5000.But what if you decided or were forced to sell the watches with a profit margin of no more than a simple ¼ dollars?Will be the profit of 1000 hours = $ 250 only, because the profit margin is too narrow.If he wants to get a larger profit margin this narrow, he should sell larger quantities of watches.If sold at a profit ¼ 10.000 hours on the clock will profit = $ 2,500, a good profit obtained to sell a large amount of hours to make up a narrow profit margin.As well as currency also ..The prices have changed parts of the millennium in most of the time if I bought a small amount of currency at a higher price and sold parts of the millennium Undoubtedly you will not get the glory of the profit.In order to be able to get a good profit in these minor changes to currency rates, must be buying and selling large quantities of currency.To calculate together to see the difference:Suppose now that the price of the euro against the dollar EUR / USD = .9850I expect that the euro will rise to EUR / USD = .9851 any one point.Let's see how high the euro will win one point when we buy 1000 euros.When we buy 1000 euros against which we will pay $ 985, any Sniba $ 985.Now you have 1000 Euros.If the price rose one point and became the EUR / USD = .9851
 We will sell what we have to euros, we will sell the 1000 euros and we will get an interview on the new price $ 985.1.Profit = selling price - purchase price
      = 985.1 - 985 = 0.1, ie, 10 centsThat any profit resulting from the sale of 1000 euros at the height of one point is 10 cents.If we assume that we sold the euro at a height of 50 points won will be $ 5. (50 points for Nqtpaluahdp * 0.10).A simple profit is not worth it ..!!But what if we bought a 100.000 euro instead of 1000 euros on the same the previous prices?Will buy 100.000 euro and against which we will pay $ 98,500 to the price first.Us now is 100.000 euro.When we sell the euro to rise after the price of one point will get $ 98,510.Profit = selling price - purchase price
      = 98510-98500 = $ 10That any profit resulting from the sale of 100.000 euro at a height of one point is $ 10.If we assume that we sold the euro at a height of 50 points won will be $ 500 (50 points * $ 10 per point).A good profit .. Is not it?So see you when you sell or buy large amounts of currency that can achieve a good profit, but if you traded in small quantities of currency will not get the profit is worth the effort.As well as see examples of the former you got by buying a 1000 euros 10 cents for every point.You and your purchase 100.000 euro got $ 10 for each point.What determines the value of the point is the size of the amount you buy or sell any currency is the value of the lute, or the size of the contract.Therefore, the less the size of the currency trading market is 100.000 currency basis, or close to this amount depending on which company they deal with, because the large amounts of currency are less good earnings little changed exchange rates.So it is very essential to know the value of each point on the currency Sttajer with a company that will deal with it.You do not need to ask, the first things that will tell you by the brokerage firm before dealing with them is the point value of each currency that did not tell you must be sure of that yourself.As mentioned, the point value is calculated depending on the size of the contract, namely, depending on the amount the amount you buy or sell currency and whenever this amount the more the value of the point more as noted in the examples of former when we bought a small amount of 1000 euros and when we bought a large quantity 100.000 euro.Because the size of the contract varies from one company to another, the point values ​​to each currency varies from company to company.Despite these differences, we have said that the contract size for the majority of brokerage firms is now 100.000 currency basis, this volume Fbmthel how value will be the point?Answer: The value will be the point on each lot as follows:One point worth of euros = $ 10.One point worth of the pound sterling = $ 10.
 The value of one point for the Japanese yen = $ 8 approx.The value of one point for the Swiss franc = $ 6 approx.Although these values ​​vary from company to company but it is true for most companies.