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What is Trading Volume and How to Use It

Updated today

Trading volume is a fundamental concept in the MT4/MT5 platforms that represents the size of your trading position. Understanding volume is essential for proper risk management and trade execution.

Key Points About Trading Volume:

  • Definition: Volume indicates the size of your trading position

  • Currency Pairs: 1 pip movement with 1.0 volume typically equals approximately $10

  • Indices: 1 pip movement with 1.0 volume typically equals approximately $1

  • Risk Management: Higher volume means higher potential profit but also higher risk

  • Calculation: Volume × Contract Size = Total Position Size

You can adjust your trading volume in the order window before executing a trade in both MT4 and MT5 platforms. For beginners, it's recommended to start with smaller volumes until you gain more experience.

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