Trade Forex Trading

Types of Lot Size in Forex - Types of Forex Lots - What are Various Types of Forex Lots?

Forex lot size defines the precise quantity of currency units a trader intends to buy or sell when trading currency pairings.

The 4 Various Types of Forex Lots are:

  1. Standard Forex Lot
  2. Mini Lot
  3. Micro Lot
  4. Nano Lot

FX Standard Lots means that for standard lots, the number of currency units that are traded using this standard lot equals 100,000 currency units.

FX Mini Lots for mini lots the No. of currency units traded using this mini lot is 10,000 units of currency.

FX Micro Lots mean the amount of money you trade with one contract is 1,000 units of the currency.

Brokers also implement a fourth option for lots known as forex nano lots

FX Nano lots - for forex nano lots, the number of currency units traded with this nano lot is 100 units of currency.

What's Standard Lot Size? - Types of Forex Lots - Standard Lot

Forex Standard Lot Size Meaning

Foreign Exchange (FX) trading employs Standard Forex Lots, where one standard lot represents 100,000 units of a currency.

The FX Standard Lot is the size of the trade, which is how much currency is bought or sold in the online forex market by someone trading forex.

A standard lot in forex is worth $100,000, but you're not moving that cash physically. Instead, the $100,000 is just represented by a contract.

Why Trade in Units of Currencies of $100,000 Standard Lots

Reason why such big units of currency are used in forex is so as to increase the amount of value of a pip (profit) when trading using standard lots.

Price movements are quantified in Pips, which stands for Price Interest Points.

Since 100 Pips equates to only 1 Cent, price movements must be calculated using extremely minute price increments (pips) - this necessity explains the standard use of standard lot sizes.

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What's Mini Lot Size in Forex? - Forex Mini Lot Size

Forex Mini Lot Size Meaning

FX is traded using Mini Lots. One Mini Lot is equal to 10,000 currency units.

The Forex Mini Lot shows how much money a forex trader will buy or sell in the online forex market.

The Mini Lot, equivalent to $10,000 units of a currency, is not physically transacted: rather, this $10,000 value is represented through the designation of a mini contract.

Why Trade in Units of Currencies of $10,000 Mini Lots

Reason why such big units of currency are used is so as to increase size of one pip (profit) when tradingtransacting using Mini Lots.

Price movements are quantified in Pips, which stands for Price Interest Points.

Because 100 Pips Equals 1 Cent, price changes are calculated and tracked using tiny price movements (pips), and that is why mini lots are used in trading.

What's Micro Lot Size in Forex? - Types of Forex Lots - Micro Lot

Forex Micro Lot Size Meaning

Forex uses micro lots, where one equals 1,000 units.

A forex micro lot sets the small amount of currency a trader buys or sells online.

The Micro Lot, which corresponds to a value of $1,000 units of a given currency, is not physically exchanged: instead, this $1,000 denomination is represented by a micro contract.

Why Trade in Units of Currencies of $1,000 Micro Lots?

Reason why such large units of currency are used is so as to increase size of one pip (profit) when tradingtransacting using Micro Lots.

Price movements are quantified in Pips, which stands for Price Interest Points.

Because 100 Pips Equals 1 Cent, price changes are calculated and tracked using tiny price movements (pips), and that is why mini lots are used in trading.

What's Nano Lot Size in Forex? - Forex Nano Lot Size

Forex Nano Lot Size Meaning

Forex is traded using Nano Lots. One Nano Lot Forex is equivalent to 100 currency units.

The Forex Nano Lot is the trade size, or the amount of currency, that a forex trader will buy or sell in the online fx market.

The Nano Lot, which is equal to $100 worth of currency, is not physically traded, but this $100 amount is shown by a nano contract.

Why Trade in Units of Currencies of $100 Nano Lots?

Reason why such large units of currency are used is so that to increase size of one pip (profit) when tradingtransacting using Nano Lots.

The Price movements are quantified in Pips, which stands for Price Interest Points.

In forex, 100 pips equal one cent. Price changes add up through tiny moves called pips. That's why traders use nano lots.

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