THE ADVANTAGES OF MICRO LOT TRADING STRATEGY
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PAIR TO TRADE EUR/ USD
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STEP 1
PLACE MARKET BUY ORDER WITH 0.01 UNIT
EUR / USD SAY @ X PRICE SL 0 TP 100 PIPS
IF THE MARKET GOES UP AND TP HIT 0.01 * 100 = $ 10 PROFIT
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STEP 2
PLACE SELL STOP PENDING ORDER WITH 0.02 UNITS
EUR / USD ( X-10) PIPS WITH SL 0 AND TP 100 PIPS
IF THE MARKET GOES DOWN UPTO 110 PIPS
THE SELL STOP ORDER WILL BE ACTIVATED @ PRICE X-10 PIPS
AND IF TP HIT THE RESULT WILL BE AS FOLLOWS
STEP 1 BUY ORDER WILL WILL BE AT LOSS 0.01 * 100 = $ 11
STEP 2 SELL STOP ORDER WILL RESULT IN 0.02 * 100 = $ 20
NET PROFIT = $ 9
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STEP 3
IN CASE IF THE MARKET GOES DOWN AND SELL STOP ORDER
ACTIVATED BUT NOT REACHED TP AND REVERSED BACK UP WARDS
PLACE BUY STOP ORDER @ X PRICE WITH 0.04 UNITS EUR USD
SL 0 AND TP 100 PIPS
IF THE MARKET GOES UP TO 100 PIPS
STEP 1 0.01 * 100 = $ 10 PROFIT
STEP 2 0.02 * 110 = $ 11 LOSS
STEP 3 0.04 * 100 = $ 40 PROFIT
NET PROFIT = $ 39
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DESCLAIMER
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IT IS ASSUMED THAT MARKET GOES UP OR DOWN BY 100 TO 120 PIPS
IN A DAY.
THE ILLUSTRATION IS IS ONLY FOR EDUCATIONAL PURPOSE BUT NOT FOR ANY TRADING ADVISE
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