@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

so i can put in that 10000 units is 0.1 standard lot,and 100000 units is 1 standard lot?
And it seems that the unit size and value varies with the currencies because EUR/USD is not the same with USD/CHF or others.

Anyway thank you.But what is the disadvantages of the leverage?

Mchumia Juani hula Kivulini

@Alala If you are around i would be glad if you could explain maybe the way the EURO DOLLAR SWISS ARBITRAGE SYSTEM ( EDSAS) so that it may be helpful to all around here who may wish to use it and also for others who are willing to purchase it in future.
Its better like in a forum like this so that we could try and test and then share anything of the forex so that it could be benefitial and if not benefitial to all we can also discuss it.

I made my personal observations after you discussed it with @ngaatu and @passyson.I wanted to get their arguments if they were practical or if they did not test it. As i discussed earlier my argument was to denounce that trading fundamental was tiresome and trading a system was based on probabilities but the questions to be asked was what was the range of probability? I tested the correlations with about 5 different demo accounts using different equity capital sizes and i got the result as i explained to you earlier in the discusion.

For the better of all investors i think it would have been better if it could be discussed so that we avoid telling every investor from the one who has $500 that it can work for him underlooking all other pitfalls.Am gladly waiting for response for all out there also if you have anything to add to benefit everyone.

Bottom line: No short cuts and easy things,you need good and practical skills.

Adios

HARD WORK,HARD WORK HARD WORK

@Ngaatu

Our weekends here are Fri and Sato,so just logged in late in the afternoon. Took afew trades and scalped for a couple of pips on GBPUSD. I can see CAD has also made some nice moves. Hope you made some good money.

I guess the USD now is really taking a breather. It has lost just marginally after the weak Non-Farm Payrolls. In the last 2-3 days its been trading in a range,so for now will concentrate more on trading with oscillators on the technicals. Probably from mid-next week we may go back to trending markets after the techs are out of the oversold levels.

Otherwise the week was great. Hope next week will be better.

@kilabe

On the systems,I think we had discussed earlier,and you were right in your analysis. So its upto someone to decide whether he is willing to trade with such a system that will give small,less risky but consistent profits,or go all out in the market and ride it openly,obviously with the discpline and proper money mgt skills.

Have a nice weekend all.

@money maniac

Good for showing interest,hope you will benefit more benefits if you are determined.I will suggest you take some tips on the babypips.com site so that you can get the overview and basics,and then you can continue in looking for information.It requires discipline and be determined to take some time and practicals.Incase you have any other questions you should not hestitate to contact me or any other for clarification and information.We are all here to help one another without being selfish.

Good weekend all.

@NGAATU

Morning all,

The weekend bail-out of Freddie and Fannie by the US government has spurred appetite for rsik and global economies have praised the bail-out for stabilising the market. However this may squeeze the USD as the govt has to borrow heavily.

USD lost in Asia open,and the volatilities seem pretty high. GBPUSD has been unable to break the 1.8000 level. Currently 1.7845,looking to short on retracements close to 1.7900. Oil and gold marginally up at 108.50 and 813,though I think they're temporary retracements.

Have a nice week ahead!

GL and GT.

Morning @all

Hope your weekend has been good.Looking also at the prevailing situation,following hurricane fears i took around EUR/USD long with around 25 pips and i got them.It was flactuating waiting for the hurricane and the england economic data.

To all guys i think you can see that fundamentals dont lie,they can only drive you this way or that but you can see their direction.Getting 25 pips in the morning thats not miracle its something you can see.Even if the movement goes against you can still play with a good figure at the end of the day.
They are now retracing back. You dont need to spend 7 hours on the comp,you can spend 4 hrs a day and have enough.

Fundamentals are the key:

NB: Am sounding a warning to all potential and would be do not be tempted invest or partner with people who do not have information or tend to "partner" with you in forex and tell you that you can invest with as little as Ksh 5000 or $70!! Those guys are not investing in forex and do not know anything,they are using it as conduit.So if you have any forex querry we have practical guys and genuine people here in this forum who can give you the information at free and have good knowledge on the market and can assist you in anyway. We have @ngaatu @toni @passyson and few others who can really help you genuinely.Dont be tempeted by the ignorant they will lie you out there.

HARD WORK,HARD WORK HARD WORK

Hi,

Since morning I have watched the pound crushing by 150 pips (last 2.5 hours). What a move! It hasnt retraced in a huge way to my comfort levels,so managed to just scalp 35 pips on 1 trade. Its really moving I wonder why? Awaiting another retracement then I short again. Currently at 1.7710. If I see 1.7750 (or close)I will short again.

USD is proving to be safe-haven after the Freddie and Fanniebail-out,so JPY will continue getting hit. Current levels of 109 are a major resistance,but if broken we may head to 109.70 then 110.

GL and GT

I think every trader took that opportunity as we projected in the morning.The move has been marvellous for the GBP/USD I projected to go around 30-60 pips before any retracement but it has hit 100 pips! The data for the U.K has been very negative as it was expected.T hats not bad for a morning session guys.

@toni sure if horses were wishes in forex!!! that 100 pips,ooops. I went out at 50 pips.Thats why discipline will always be required mzee. Hows your projections on other currencies?

Am looking at CAD building permits and i think the comdolls may eat around 25 pips of the USD,as it awaits for the consumer credits of the U.S..My technicals still are giving me a positive direction.

@NGAATU

Ny session is here with us...i am going short GBP/CHF and EUR/USD at least for the next hour...

Happy trading



Anyone who lives within their means suffers from a lack of imagination