With this post we are glad to begin with the long series of Zulu Pills, the mini articles with which we will try to intrigue you by describing in details the whole Zulutrade’s world and structure.
Let’s begin from the Zulutrade’s Home Page. Some might think it doesn’t contain anything interesting, but they’re wrong.
If we have a look at the center of the home page of Zulutrade, right below the flipping images, we can find a huge number, that is constantly self-updating, every second.
At the time of writing is around 483 billion dollars. Not bad right?
Besides there is a caption that states ” Zulutrade ‘s live accounts current transaction volume in USD “
Let’s understand how to interpret it so we don’t confuse what this huge number means.
In practice, let’s imagine I am the owner of a live account, that is with real money. I enable a Signal Provider and I assign him a specific lot size, let’s say of one standard lot. A standard lot is $ 100,000 in exposure, and my pip will be 10 USD.
When my Signal Provider will open a transaction with one standard lot, I will be exposed for $ 100,000, and these $ 100,000 will end up in the count of the current transaction volume of Zulutrade.
Then, let’s combine my position with all the other positions of all other Signal Providers of all the other users with live account on Zulutrade … and here we have this huge number.
It’s clear that, thanks to the Leverage effect, which has become huge and covers all the trading operations, the volume does not match the current real value of the live accounts engaged in Zulutrade. With leverage, that now all brokers provide to everyone, I can expose myself to the market for one standard lot or more, having for example just 5000 usd on my real account.
Fact remaing that this number is derived from the transactions made with live accounts only. Leverage or not, the number is still huge, and this confirms the fact that now Zulutrade has become a true power of the Forex market.
See you in the next Pill.
Bye