Once you have identified a trading opportunity, you will choose to either go Long (to Buy) or Short (to Sell) in regards to the given Currency Pair. The first step is to go ahead and press New Order within the MT4 platform like below:
Once you’ve done that, you’ll be presented with the following menu for you to choose what Volume you would like to trade.
As you can see the Volume of your EURUSD trade (in this case) can be in units of 0.01 which are referred to as Micro Lots, 0.1 are called Mini Lots and full units such as 1.0 are called lots. You can imagine that your trade can then be adjusted to 2.02 or 1.12, etc.
- Micro Lot 0.01 represents 1,000
- Mini Lot 0.10 represents 10,000
- Standard Lot 1.00 represents 100,000
Let’s say that you’ve deposited $1000. When you choose to open a 0.01 lot, for the currency pair of EURUSD at the rate of 1.37921 that means 1.37921 x 10,000 = $13,792.10 and divided by let’s say your leverage of 1:100 $137.92 (This is the Cost for you to open this position)