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  1. #1
    Join Date
    Dec 2012
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    452

    Big or small lot size trade

    Its a very simple equation that a big lot size gives more profit and the less lot size gives us less profit but for that investments also matters . My question is that in spite of having more investment - do you prefer big or small lot size trading.

    Having small investment we can't go for larger lot size trade.



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  2. #2
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    Jun 2013
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    It will all depend on your capital. And also remember that the higher the lot, the higher the risk. In other to minimize the effect of losing on your capital especially if it's a small capital, it is always better to go for small lots. A lot size that is small will give a trader a rest of mind that even though the losses come, the magnitude wouldn't be much on his capital.

  3. #3
    Join Date
    Dec 2013
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    355
    I prefer to use small lot size for trading in forex. I try to keep discipline with my money management. I try to maximize it so i can get maximal result when trading in forex. Beside that, to use big lot size, we also must be ready to bear the big risk. If we are new trader, we must understand the risk if we want to get maximal profit in forex trading.

  4. #4
    We should use the lot size that we can afford to lose. If we use a lot size that is too high we could lose all the investment within a second with a wrong choice of trade. I am trading with OctaFX, it allows me to use bit higher lot size thanks to their rebate service, where even a losing trade is a profitable one for me since I receive up to 15 USD per lot size, and it is also equal to 50% of the spread that I pay.

  5. #5
    Join Date
    Dec 2010
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    7,813
    I do use small lot size and big lot size depends on the result of my analysis. If theirs a good chance that the breakout is strong then I will going to position myself with big lot size. But if the trends is sideways without clear sign of trends movements then I will just going to use low lot size and wait for the breakout or reversal to kick in before I trade again.

  6. #6
    Join Date
    Nov 2011
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    6,014
    Of course i will prefer big lot size because i only need less pips to earn with that with 1 lot size i only need around 100 pips per month to earn around $1000, with that much i can live for around 4 months but it must be have big capital too.

  7. #7
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    Apr 2013
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    It is depending on confidency of each trader to use small lot size or big lot size in each condition of market and risk manegemant taht we use. Now I usually using minimum 0.01 lot in my trade in Armada Markets. small lot size trade is better than big lot size trade because when the trader is trading with small lot size then the risk of loss is affordable but if the trader trade with big lot size then the risk of loss can not be of affordable amount so that's why it is better to trade with small lot size in Forex trading.

  8. #8
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    Nov 2011
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    Quote Originally Posted by uncle gober View Post
    It is depending on confidency of each trader to use small lot size or big lot size in each condition of market and risk manegemant taht we use. Now I usually using minimum 0.01 lot in my trade in Armada Markets. small lot size trade is better than big lot size trade because when the trader is trading with small lot size then the risk of loss is affordable but if the trader trade with big lot size then the risk of loss can not be of affordable amount so that's why it is better to trade with small lot size in Forex trading.
    It is also about your total equity, since i am a trader who also calculate the worst thing with my risk management i must use leverage wisely and so do my lot size, if i have enough capital i will increase my lot size.

  9. #9
    Join Date
    Nov 2014
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    148
    I would say according to the given market situation and how skillful we are. If we are newbies without experience than the lower the lot size the easier and safe it will be. I personally love using higher lot and given that I trade with OctaFX, I don’t have to face any restrictions as they have huge leverage up to 1.500 and also healthy rebate service, it brings 15 USD profits to me on every 1 lot size trade, so this combo is just perfect for me to use high lot!

  10. #10
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    Nov 2011
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    Quote Originally Posted by Frey Felipe View Post
    I would say according to the given market situation and how skillful we are. If we are newbies without experience than the lower the lot size the easier and safe it will be. I personally love using higher lot and given that I trade with OctaFX, I donít have to face any restrictions as they have huge leverage up to 1.500 and also healthy rebate service, it brings 15 USD profits to me on every 1 lot size trade, so this combo is just perfect for me to use high lot!
    But i think risk management is important as the part to see does we need big or small lot size. Leverage also playing important part for forex trader, in other hand like you said it is about skill and also market situation. At the moment with my current condition i prefer low lot size, as my equity rising for sure will choose higher lot size.

  11. #11
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    Dec 2013
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    355
    Quote Originally Posted by pepy View Post
    But i think risk management is important as the part to see does we need big or small lot size. Leverage also playing important part for forex trader, in other hand like you said it is about skill and also market situation. At the moment with my current condition i prefer low lot size, as my equity rising for sure will choose higher lot size.
    Risk management is very important. Without any management skills, we will not be able to get maximal result in forex. We can try to hone it using demo account. Then try to improve our trading skills if we want to get more maximal result from time to time.

    "Invite your friend, get $10 and win $5,000"

  12. #12
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    Nov 2011
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    Quote Originally Posted by CahCuncun View Post
    Risk management is very important. Without any management skills, we will not be able to get maximal result in forex. We can try to hone it using demo account. Then try to improve our trading skills if we want to get more maximal result from time to time.

    "Invite your friend, get $10 and win $5,000"
    Choosing the right lot size is one part of risk management. When choosing your total lot size that you want to choose make sure you choose based on your total equity and combined with your total leverage. With that you can accumulate how much you can lose with one pair opened.

  13. #13
    Join Date
    Aug 2015
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    410
    Traders need to select their trading lot size according to their account strength. Using over lot size is too harmful for trading account. Interestingly now I am using double lot size with the same risk ratio. Ask me how? Yeah, I got 100% welcome bonus from TradingBanks so, I can follow this risky way (actually not because of my double trading equity) comfortably.

  14. #14
    Join Date
    Feb 2016
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    670
    Quote Originally Posted by Shobur Ahmed View Post
    Traders need to select their trading lot size according to their account strength. Using over lot size is too harmful for trading account. Interestingly now I am using double lot size with the same risk ratio. Ask me how? Yeah, I got 100% welcome bonus from TradingBanks so, I can follow this risky way (actually not because of my double trading equity) comfortably.
    Yeah, better consider this before you put them in. You may gather bigger profits with big lot trading but you should watch your account when things are not going well.

  15. #15
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    May 2016
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    353
    We can use any type of Lot size as per the market trend and the trading strategy we adopt because our main aim is to make good profit percentage and to make a good career in this field and when we have the perfect money and risk management ideas we can easily reach the goal safely .

  16. #16
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    Nov 2011
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    Quote Originally Posted by Shobur Ahmed View Post
    Traders need to select their trading lot size according to their account strength. Using over lot size is too harmful for trading account. Interestingly now I am using double lot size with the same risk ratio. Ask me how? Yeah, I got 100% welcome bonus from TradingBanks so, I can follow this risky way (actually not because of my double trading equity) comfortably.
    Oh, so you're using the bonus from your broker? Well that is a good idea to reduce the risk and prolong our chance to grab profit. Since use too big lot, would resulted big loss it would be better if trader become wiser when trade, don't overuse big lot.

  17. #17
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    Apr 2015
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    for a lot elections adjusted only by ability and our capital. we must of thinking well how do we account can survive in forex. therefore, if we're new to forex it will be better if we could use a small lot like 0.01. very dangerous trading with big lots

  18. #18
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    Jul 2015
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    One should not think about trading in terms of lot size. It can be different. What the main focus should be, is to risk management. If one can manage risk properly and gain profit consistently, then eventually lot size will increase slowly.

  19. #19
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    Nov 2011
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    There is no point of arguing which is the best between two. Big or small lot size won't yield any profit if the trade who handle those lots aren't good enough or incompetent. If you are competent enough profit would be profit and no matter how small or big your lot size

  20. #20
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    Apr 2015
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    I think it is better adjusted only by our ability. if we are beginners are better off trying to trade in small lots used as 0.01 so that the capital we will not run out quickly. so it will benefit us

  21. #21
    Join Date
    May 2016
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    353
    yes we have to know our trading ability and for that first we have to measure the risk parameter and as per that we can use the Lot size ,actually when we can trade with proper money and risk management ,we can definitely make good progress in performance here so that money can flow as per our plan.

  22. #22
    Join Date
    Sep 2014
    Posts
    152
    We definitely need to trade according to our ability and we should never try to fast forward anything instead we must keep everything straight forward, it’s something that will help us with performance, I always use controlled lot size even though I have huge capital above 4-5k, but still controlled lot size is always better and profitable.
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  23. #23
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    Apr 2014
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    646
    newbie trader that wants to learn how to trade should be able to start trading with small lots through, if he wants to a make a profit from his trading Correctly. Trading in the demo account is the best place for newbie traders to manage lots as well Because they will be Able to learn very intense there.

  24. #24
    Join Date
    Dec 2014
    Posts
    161
    Lot size should be irrelevant till we have good knowledge because we can work anything out, but without having enough education we will mess it up big time with higher use of leverage, so in such scenario, we got to be seriously careful and make sure we don’t do anything silly or else we will lose it all. I trade with simple approach and that is with controlled lot size, although I do have enough education but I still believe balance is the key here. I get a lot of help with OctaFX since they have mighty 50% bonus on deposit offer, it’s fantastic especially to do with been trade able, it really makes trading easy for me and helps me achieve positive results.

  25. #25
    Join Date
    May 2016
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    9
    Different times - different choices. And of course it depends on the sum you have. In other to minimize the effect of losing on your capital especially if it's a small capital, it is always better to go for small lots.

  26. #26
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    Feb 2016
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    670
    Quote Originally Posted by Rylai View Post
    Different times - different choices. And of course it depends on the sum you have. In other to minimize the effect of losing on your capital especially if it's a small capital, it is always better to go for small lots.
    You might want to brave yourself to put a bigger lot size when you're really sure about your analysis, but it's better to prevent any kind of things with a proper risks management.

  27. #27
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    Apr 2015
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    for the lot would be better adapted to our capacity and our capital. we must think well how many lots we will use for trading. Lot election is very important for traders because it will affect our trading results

  28. #28
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    Jul 2015
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    Quote Originally Posted by novarisa View Post
    You might want to brave yourself to put a bigger lot size when you're really sure about your analysis, but it's better to prevent any kind of things with a proper risks management.
    I disagree with you. Braving is not a good idea even when one is very sure about any direction. It can go wrong. It's always a good idea to stay with the risk management rule even if one is absolutely sure that trade will go in his/her desired direction.

  29. #29
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    Nov 2011
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    Brave without any planning is the same to become fools, i don't want that kind of bravery. Brave or to be exact is confidence needed but in the right portion because there are some people who don't know to put it and in the end lose more. By the way, lot size is not matter of bravery but smart planning and our capital's availability

  30. #30
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    May 2016
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    2,447
    I'd prefer to trade with big lot, but it is impossible for now because my capital is still low i can only afford as much as 3 micro lot, usually i still use 1 micro lot only. Why i prefer big lot size? It is all about earning, i earn big with big lot size but of course come up with bigger risk, but i am ready with it and i think with strict risk management you can overcome it.

  31. #31
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    Jun 2016
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    16
    Thank you sir i ll try to read about it what is actually so that i can understand more about this things thank you again for your information i just saw this on the internet and looking for some new things
    Last edited by Maximexchange; 01-07-2017 at 08:38 PM.

  32. #32
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    Nov 2011
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    Sure, you should put risk management into your head when you're trying to choose what kind of lot size you choose, as i said before this is simple words which i m sure many traders already knew that never spend into lot size which is more than 5% of your total capital, this is done to reduce unnecessary risk and optimize the use of lot size in the long term.

  33. #33
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    May 2016
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    Quote Originally Posted by Maximexchange View Post
    We should use proper money management so that we can keep our capital safe there are many trader who use big lot size and flush their account its better to trade according to money management and use low lot size and this will make profit consistently.
    Yes it is truly a good idea. I don't think lot size would affect so much if you're trading with bad strategy or bad risk management. If you trade with good strategy and good risk management but use micro lot i'm sure your earning is bigger than someone who use mini lot size but have bad strategy or bad risk management,

  34. #34
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    Apr 2014
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    646
    I better prepared to take advantage of a small lot in trading because it sometimes had to face the news to get a good profit, and it would be quite dangerous if done by utilizing a large lot

  35. #35
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    Jul 2015
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    Quote Originally Posted by chopetonk View Post
    I better prepared to take advantage of a small lot in trading because it sometimes had to face the news to get a good profit, and it would be quite dangerous if done by utilizing a large lot
    You are right. Also there are lots of undesired activities happens during news time. Like slippage and widened spread. I prefer to stay away from news trading.

  36. #36
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    Apr 2015
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    Quote Originally Posted by Sininfinity View Post
    You are right. Also there are lots of undesired activities happens during news time. Like slippage and widened spread. I prefer to stay away from news trading.
    it depends on the individual trader wants to use any trading strategy. there are also traders who like trading when news releases but there is also avoided. if I prefer trading to avoid the news, because the risk is very high

  37. #37
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    Aug 2017
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    There are many ways that can make you help to reduce your losses in the forex trade market. The thing which you have to build up for reducing your losses is knowledge. Better knowledge can increase up your profits and decrease your losses. After building up my knowledge now I trade with Forex4you. It gives the maximum leverage and minimum spread. It is a very reliable broker for everyone. No hidden charges while withdrawing money, no commissions.

  38. #38
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    May 2020
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    For a beginner - definitely small volumes. When there is already work experience, you can think about increasing the size of investments, but only with experience.

  39. #39
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    Jul 2020
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    I think that you need to start anyway with small hobbies. And then, after training and development, you can already try to go out for large sums.

  40. #40
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    May 2020
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    I believe that it is still worth raising the trading size in the case when there is already a chance that you will make a profit. I consider this option to be the most profitable.

  41. #41
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    Apr 2017
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    719
    leverage is one of the most important tools in forex market. It increases the investment ability. Traders generally choose those brokers which give more leverage than others. So it is a very important to choose a broker which has dynamic and high leverage. I choose TP Global FX because of their high leverage which is 1:500. They don't change their ratio. It helps me to make more profit.

  42. #42
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    Apr 2020
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    Since I worked relatively briefly in this industry, I chose an Amarkets broker with a small deposit - only $100. In my opinion, for a beginner this is quite the optimal option.

  43. #43
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    I think the trader should make his own choice here. The advantages and weaknesses of each option he should already know, left only to make a choice.

  44. #44
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    Apr 2016
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    605
    Forex is commonly traded in specific amounts called lots, or basically the number of currency units you will buy or sell. The standard size for a lot is 100,000 units of currency, and now, there are also mini, micro, and nano lot sizes that are 10,000, 1,000, and 100 units. If your account is funded in U.S. dollars, this means that a micro lot is $1,000 worth of the base currency you want to trade. If you are trading a dollar-based pair, 1 pip would be equal to 10 cents. 2 Micro lots are very good for beginners that want to keep risk to a minimum while practicing their trading.

  45. #45
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    Apr 2020
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    I believe that much depends on the skills of the trader. The more confidence the trader has in his actions, the more you can invest in trading.

  46. #46
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    As for me, it depends more and more on the level of knowledge and skills of this trader. It is by these parameters that the trader can choose the lot size, as for me.

  47. #47
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    Apr 2020
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    I believe that the size of the lot should still be chosen by the trader himself. For example, I focused on the minimum amount of the deposit. For this reason, Amarkets chose a broker with a minimum amount of $100.

  48. #48
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    Jun 2020
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    The lot size should, of course, be determined by the situation in the market and, of course, by the trading plan that is developed before trading.

  49. #49
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    Aug 2020
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    157
    Most amateur traders jump to open big lot size as it brings immense profit. But a big lot size can transform into a bad dream. You can get a margin call. Don't risk more than 2% of your capital. I also used to take big lot and losing money then my account manager from Eurotrader has impacted me to fathom that I was conferring tremendous mistake. The broker also provides low spreads and instant deposit and withdrawal facility.

  50. #50
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    Jan 2020
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    Building up knowledge by using a demo account is very important for a trader. Without strong knowledge, a trader cant earns money from the forex market. If you use a demo account then there’s no fear, no money-losing chance. You can easily build up your forex knowledge. I used a demo account before start live trading. Now I trade with Tpglobalfx. They are very helpful and supportive. They never make disappointment to their client.

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