Lots

Hi, this is NorthRay.💪 Remember when I opened that very first 0.01 lot trade? I looked at the trading terminal and saw a bunch of confusing words: — Pip — Swap — Leverage — Margin — Lot I felt like someone sitting in the cockpit of an airplane where all the buttons are labeled in Chinese. Looks impressive, but you have no idea what to press. For the first two weeks, I just ignored those words. I only watched the green profit and the red loss. But then I realized: without understanding these terms, I’m not controlling the trade — the trade is controlling me. So I decided to figure it out. No smart textbooks. No formulas with three-story fractions. Now I’ll explain it the same way I understood it myself. In simple terms. With everyday examples.🥶 Pip — the smallest unit of pain and joy What it is: A pip is the smallest price movement. The tiniest movement on the chart. In simple terms: Imagine you’re looking at the price of a kilogram of potatoes. — The price changes from $50.00 to $50.01 — that’s basically 1 pip in Forex. It’s a microscopic change. Usually, 1 pip is the fourth or second decimal place, depending on the asset. Why you should care: When you see “profit +237 pips,” it means the price moved 237 tiny steps in your direction. More pips = more money. But the value of each pip depends on your lot size.   Lot — how much money you’re putting on the line What it is: A lot is your position size. How many “kilograms” you’re buying. In simple terms: At a store, you can buy 1 kg of apples or 10 kg. Bigger amount = more money and more risk. In Forex: — 1 standard...