Concept of contracts & lots ?! Spreadbettor moving to IB

phoenix25140

Active member
102 2
Hi all,

I have recently been watching a live forex trade room with IB brokerage.

The trader uses 5 Contracts @ 50,000 per lot to initiate the trade and then removes contracts as targets are hit.

For example Buy 5 Contracts @ 1.32000

2 Contracts off at 1.32010

2 Contracts off at 1.32.020

1 Contract off at the final target of 1.32030

There is no explanation or financial explanation of the final profit figure or risk. Is the value of the initial trade £25 per point, decreasing once each contract is removed ?!

Any explanation or insight would be a massive help as Im new to this type of trading as I previously used spread betting only.
 
 
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