The unit of foreign exchange transaction volume is hand, and we often measure the amount of foreign exchange speculation that we have traded 1 lot and 2 lots, etc. It is precisely because the unit of foreign exchange transaction volume is lot that many newbies are relatively unfamiliar with this concept.
1 lot of foreign exchange trading volume is the abbreviation of 1 standard lot. If 1 standard lot is converted into our usual foreign exchange contract unit, it is 100,000 contracts. For example, if we buy 1 standard lot of USD / JPY , it means that we have bought 100,000 USD of JPY. But when we trade at ordinary times, due to the existence of high leverage, if we trade 1 lot of products, we only need a few hundred dollars of margin to trade.
The unit of foreign exchange trading volume is 1 lot, but it does not mean that investors need to trade 1 lot each time. When speculating in foreign exchange, the investor’s trading volume is less than 0.01 lot each time, and only a few dollars of margin can be used. Therefore, investors do not have to think about how high foreign exchange trading is, it is just a product that can be traded with only a little money.
In external trading, not only foreign exchange, but also gold is traded in lots. The trading volume of 1 lot of gold products is 100 ounces of gold.
Reminder: Lagarde reiterated the plan to raise interest rates twice this summer, whether the dollar has peaked, we need to pay attention to Powell’s speech this week. For specific operations, please pay attention Reelfinancial.com . The market is changing rapidly, investment needs to be cautious, and the operation strategy is for reference only.