The video explains trade size, which refers to how much you’re actually trading and the risk involved in every one point move. The host provides examples and a shortcut tip for new traders.
Understanding Trade Size: A Jargon Busting Guide for Traders
Introduction
– Explaining financial market jargon in a simple way
– Importance of understanding trade size in trading
– Difficulty in grasping the concept of trade size
What is Trade Size?
– Explanation of trade size and trading in units
– How much is at risk in trade size
– Importance of understanding trade size in different markets and with different brokers
Example of Trade Size
– Pound US Dollar example of trade size
– Explanation of one point move in the market
– Demonstration of a live trade made the previous day
– Calculation of profit/loss on the trade
Shortcut Tip for Understanding Trade Size
– Importance of knowing trade size before placing a trade
– Demo trade example on gold to understand trade size
– Calculation of risk with ten units in gold
– Conversion of risk to larger trade sizes in gold
Conclusion
– Recap of the importance of understanding trade size
– Benefits of using demo accounts for practicing trade size calculations
– Encouragement for traders to simplify complex trading concepts for easier understanding.