Forex Trading Guides

Lot Size, Pip Value, and the Mechanics Behind Every Forex Trade

Forex has its own vocabulary, and a surprising number of costly mistakes come from misunderstanding a handful of core terms: lot size, pip value, margin, and swap. This category breaks each one down individually and then shows how they interact.

On sizing, you'll find guides on choosing the right forex lot size for your account, the differences between standard, mini, and micro lots, and how lot size and pip value work together to determine what a single pip movement is actually worth in your account currency. On cost, we cover what forex swap is and how it's calculated, and how overnight rollover fees affect trades held past the daily cutoff.

There's also a close look at how margin and leverage work together, what actually happens when you get a margin call, and what realistic monthly returns look like for a compounding forex account once spreads, swap, and drawdowns are factored in. Each guide is written so you can work through the math with your own broker's specifications rather than a generic example.