@timber
A unit has relationship with the lot when in trading in that;
- A lot is the standard unit used in the transaction and in forex currency the standard lot is equal to 100000 units,a mini lot comprises of 10000 units or maybe 1000 units which is a micro lot.Nowadays some brokers can even offer to you 1 unit.
The value of the base currency in the transaction will be based on the lot/units ; e.g in EUR/USD 100000 units or a standard lot pip value will be $10,a mini-lot or 10000 units will be $1 and e.t.c. If you think its complicated to use the term lot it can also be simpler if you just address it with the units as i am doing also personaly and it can be easier for you to know the value if you are new in forex.
Regarding the merits and demerits i do think that the larger the lot size or units will translate the big the value hence an advantage when you get profits but it can also be vice versa if it goes against you.
Leverage is the ability to gear your account into a position greater than your total account margin. For instance,if a trader has a $1,000 margin balance in his account and he opens a $100,000 position,he leverages his account by 100 times,or 100:1. If he opens a $200,000 position with a $1,000 margin balance in his account,his leverage is 200 times,or 200:1. Increasing your leverage magnifies both gains and losses.Leverage is the ability to gear your account into a position greater than your total account margin. For instance,if a trader has a $1,000 margin balance in his account and he opens a $100,000 position,he leverages his account by 100 times,or 100:1. If he opens a $200,000 position with a $1,000 margin balance in his account,his leverage is 200 times,or 200:1. Increasing your leverage magnifies both gains and losses.Leverage is the ability to gear your account into a position greater than your total account margin. For instance,if a trader has a $1,000 margin balance in his account and he opens a $100,000 position,he leverages his account by 100 times,or 100:1. If he opens a $200,000 position with a $1,000 margin balance in his account,his leverage is 200 times,or 200:1. Increasing your leverage magnifies both gains and losses.
leverage is not holy as purpoted by many brokers by offering you high leverage positions.High leverage positions exposes your trading capital too.So a person with a high leverage of 200:1 does not mean is better that much than of 50:1,he increases your options but when it goes other side you will feel the pinch.
A dealing desk provides price and executes trades,many brokers are commonly dealing desk and the disadvantage is that a dealing desk has many options of manipulating and many problems arising in the trading platforms,e.t.c.Though many deny but they are practising it.
ECN is an acronym for Electronic Communications Network. A Forex ECN does not operate a dealing desk but instead provides a marketplace where multiple market makers,banks and traders can enter competing bids and offers into the platform either inside or outside the spread,allowing traders to trade against each other and with multiple counterparties. A trader might open a trade with liquidity provider "A" and close it with liquidity provider "B",or have the trade executed against the bid or offer of another trader. Participants of the ECN send in competing bids and offers into the platform,meaning no one liquidity provider can manipulate the price feed. Volume available at each price is usually displayed to traders. Orders are matched between counterparties,usually for a small fee.
An acronym for 'No Dealing Desk'. A no-dealing desk broker uses a matching engine to match up orders between its liquidity providers and their clients. The liquidity providers send in competing bids and offers into the platform,meaning no one liquidity provider can manipulate the price feed. A no dealing desk broker may increase the spread instead of charging a commission to their clients.
@NGAATU