How Much is 1 Contract in Forex? - 1 Contract Forex - Definition of a Standard Contract in Forex
1 Standard Contract in forex is equivalent to 100,000 units of currency.
1 Standard Contract is a 1 Standard Contract
The minimum price movement for a 1 Standard Contract is 10 dollars
Standard Account for Standard Contracts
A Standard Account is denominated in US Dollars and trade transactions are placed using standard contracts. One standard contract is 100,000 units of currency. One standard contract is also known as a one standard lot. Minimum opening capital for the standard contracts account - at least $10,000 USD.
1 standard contract refers to the minimum size of a single trade. This standard contracts account option is the most suitable for traders with a enough capital to invest - this standard account option requires $10,000 & $50,000 dollars as beginning capital, for this standard contracts account the investor will not be undercapitalized and with good money management rules and money management strategies, this standard contracts account option has the highest chance for profitability because it is not under capitalized. Under capitalization is what makes most investors not profitable.
It is not recommended to open a standard contracts account unless you have a balance of at between $10,000 minimum and $50,000.
Professional Money Managers recommend $50,000 minimum to open this standard contracts account and only opening 1 or 2 contracts maximum per every $50,000 dollars you have. However, most online forex brokers will still open this standard contracts account for you if you have more than $10,000.
If an exchange rate for EURUSD is quoted at 1.4000, then the smallest transaction available in a standard contracts account is worth $140,000 of currency to buy 100,000 EUR. With leverage of 100:1, this is only $1,400 of your money and the rest of the money you will borrow from your forex broker (with leverage option of 100:1, your broker gives you $100 dollars for every $1 dollar that you have, therefore for this transaction using only $1,400 of your capital, the online broker will give you $100 dollars of leverage for every $1 dollar you have, meaning after leverage you will have $1,400*100=$140,000 which you can then buy 1 standard contract of EURUSD).
For Standard Contract - Minimum Price Movement of 1 pip = $10
