It is important when learning to trade to have a solid understanding of the basics of how the markets move and operate and two of the key principles to understand are based around pips and lot size. Pips are the key unit of measurement used on a day to day basis when trading so it’s important to understand what they are and the ways in which they work. As well as this, lot sizes are another key component as they are related to how much you are going to be risking when taking live positions in the market. You must have a strong basic understanding of lot size if you are going to be able to enter correct positions in the markets and not over risk on your accounts.
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