*Many traders, beginners and not only do not know how to calculate the lot and act in practice not selectively and illiterately*

**Let's examine what a lot is, how much it costs and how to calculate it:**

- We will calculate by the old quotation system (four decimal places).

**The cost of lots in forex:**

The size of each position opened by a trader is measured in lots

Standard 1.0 lot = $100,000

Mini lot 0.10 = $10,000

Micro lot 0.01 = $1,000

**This size is always a constant value, independent of currency rates.*

*Leverage does not affect the calculation of the lot

*Leverage does not affect the calculation of the lot

High leverage will only allow more lots to be opened.

**How to calculate the lot:**

Calculating the lot by yourself will give the trader a conscious understanding of possible losses, which is necessary for evaluating the situation, strategy and risks. This requires to know the pip value in any lot size

Then, a trader won't care about the leverage size and won't need to know the number of currency units in a lot at all.

Let's look at calculation of lot size as an example:

Let's assume that the EURUSD chart shows a long entry price of

**1.0251**.

The trader needs to place a stop-loss, but he must know the amount of possible future losses on this trade, if a protective order triggers.

As we know from theory, a stop-loss order should be placed

*Below the minimum/maximums;*

A fixed value using indicators or Expert Advisors.

A fixed value using indicators or Expert Advisors.

We measure the size from the current position to the lower tail of the candle, we get

**25**points.

We add a small reserve of

**7**points to prevent the downward breakout from accidentally catching the stop loss and obtain

**32**points.

This stop loss should be subtracted from the current price.

We multiply the quote by

**10000**for convenience and obtain

**10251**-

**32**=

**10219**.

We divide it back by

**10000**and get

**1.0219**(this is the stop-loss quote) and set our stop-loss at

**1.0219**

For ease of risk calculation we should always take the lot size

**0.1**.

For a

**0.1**lot one pip of price movement is approximately worth $

**1**,

for a micro lot

**0.01**the cost per pip would be

**10**cents,

for a whole

**1.0**lot it would be $

**10**

*Why is it easier to start with*

**0.1**lot?It is very easy for a trader to calculate that

**32**points of stop loss in our example would cost him $

**32**in losses. This is quite reasonable for a $

**1000**deposit.

It is easy to think how much his potential loss will be worth, for example at

**0.07**lots:

**32**points at

**0.1**lot costs $

**32**,

at

**0.01**lot ten times less - $

**3.2**. At lot

**0.07**:

**3.2**x

**7**= $

**22.4**.

🤩I trade with a major player, I know where his orders are

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💪🏽Average profit on crypto ➕2️⃣0️⃣0️⃣0️⃣% per month

💪🏽Average Forex profit ➕2️⃣5️⃣0️⃣0️⃣ pips per month

😎I know all the traps of a market maker

📲My telegram https://bit.ly/3MzgvhH