In depth analysis of the concept of "hand" in Exness and its application in the field of forex trading. "Hand" is a crucial concept that directly affects traders' risk management and trading strategies. Exness, as a leading forex trading platform, provides users with multiple lot options, making trading more flexible and diversified. This article will provide a detailed analysis of the concept of "hand" in Exness and its practical applications, helping traders better understand and utilize this key term. What is' hand '? In foreign exchange trading, 'hand' is a unit used to measure trading volume. A standard lot is equivalent to 100000

In depth analysis of the concept of "hand" in Exness and its applications

In the field of foreign exchange trading, 'hand' is a crucial concept that directly affects traders' risk management and trading strategies. Exness, as a leading forex trading platform, provides users with multiple lot options, making trading more flexible and diversified. This article will provide a detailed analysis of the concept of "hand" in Exness and its practical applications, helping traders better understand and utilize this key term.

What is' hand '?

In foreign exchange trading, 'hand' is a unit used to measure trading volume. A standard lot is equivalent to 100000 base currency units and is the most common lot size unit in foreign exchange trading. In addition, there are Mini Lots and Micro Lots, which are equivalent to 10000 and 1000 base currency units, respectively. These different lot units provide traders with multiple options to trade based on account size and risk tolerance.

On the Exness platform, traders can choose different lots to trade, allowing them to flexibly manage their trading volume and risk.

Calculation method for hand count

The calculation method of lot size is a fundamental knowledge that every forex trader must master. The calculation of the number of lots not only affects the trading amount, but also determines the requirement for margin. The calculation formula for the number of hands is as follows: Transaction amount=lots x contract size

For example, if a trader trades 1 standard lot of EUR/USD on the Exness platform with a contract size of 100000 units, the trading amount would be: Transaction amount=1 x 100000=100000 euros

Similarly, if a trader chooses to trade 1 mini lot of EUR/USD, the trading amount is 10000 euros.

Lot size and margin

The choice of number of lots directly affects the requirement for margin. Margin refers to the funds that need to be frozen in order to maintain a position. The margin requirements on the Exness platform vary depending on the trading variety and leverage ratio. A higher leverage ratio usually means lower margin requirements, but it also brings higher risks.

For example, if a trader trades 1 standard lot of EUR/USD with a leverage of 100:1, their margin requirement is: Margin=trading amount/leverage ratio=100000/100=1000 euros

This means that traders need to keep at least 1000 euros as margin in their accounts to sustain this transaction.

Hand count and risk management

Choosing the appropriate number of hands is an important step in effective risk management. A large number of lots may lead to excessive risk, while a small number of lots may limit potential profits. Traders should choose a reasonable number of lots based on their risk tolerance, trading strategy, and market conditions.

On the Exness platform, traders can use tools such as stop loss orders and limit orders to set reasonable stop losses and target prices to control risks and lock in profits. For example, if a trader trades 1 standard lot of EUR/USD and sets a stop loss of 50 points, their maximum potential loss is: Maximum potential loss=lots x value per point x stop loss points=1 x 10 USD/point x 50 points=500 USD

Through this approach, traders can have a clear understanding of the risks associated with each transaction and make more rational trading decisions.

Practical application cases

Assuming a trader trades 2 standard lots of GBP/USD on the Exness platform, the current market price is 1.3000, the contract size is 100000 units, and the leverage ratio is 200:1. The transaction amount and margin requirements are as follows: Transaction amount=2 x 100000 x 1.3000=£ 260000 Margin=260000/200=£ 1300

Through this detailed calculation, traders can have a clear understanding of the use of funds in their accounts, enabling better risk management and fund planning.

Understanding and mastering the concept and application of "hand" on the Exness platform is crucial for the success of forex traders. By making reasonable choices and managing the number of lots, traders can effectively control risks, optimize trading strategies, and achieve more robust investment returns. I hope that the detailed analysis in this article can help traders better understand the key concept of "hand" in Exness, and enhance their trading skills and profitability.

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