Multiple Lot Tactics in the Forex Market.

There are several tactics in the forex market designed to increase profits . One such tactic is the multiple-lot strategy, though its catchy name conceals well-known techniques.

A more accurate term for this tactic would be position expansion. It's a rather risky method of profit generation, whereby gains are achieved not through time, but by increasing trading volumes.

Almost every forex trader who doesn't have a large capital base but wants to quickly make a significant profit employs something similar.

It's as simple as that: with $1,000 in your deposit, you typically open positions of 0.5 lots . Then, if you're completely confident in the trend, you increase the volume to 1 lot or more. The key is that your forecast is accurate; otherwise, you'll have to close the trade immediately, as losses will grow as quickly as your deposit increases. A

less risky option is to add positions . In this case, you don't immediately open a 1-lot trade, but wait until the first one shows a significant profit, which indicates the correct trend direction. Experience shows that the profit achieved should be at least 30 pips.

There's a strict rule: when adding positions, use only trading instruments that are excluded from news releases. For example, it's better to trade the EUR/USD during the Asian trading session.

The maximum size of open positions is also important: it's desirable that the trade amount not exceed your deposit by more than 200 times, as even this figure carries significant risk.