Types of Lot Size in Forex - Types of Forex Lots - What are Different Types of Forex Lots?
Forex lot size is the number of currency units that a trader will be buying or selling when trading currency pairs.
The 4 Various Types of Forex Lots are:
- Standard Forex Lot
- Mini Lot
- Micro Lot
- Nano Lot
Forex Standard Lots for standard lots the number of currency units traded using this standard lot is 100,000 units of currency.
Forex Mini Lots for mini lots the number of currency units traded using this mini lot is 10,000 units of currency.
Forex Micro Lots for micro lots the number of currency units traded using this standard lot is 1,000 units of currency.
Brokers also implement a fourth option for lots known as forex nano lots
Forex Nano lots - for forex nano lots the number of currency units traded using this nano lot is 100 units of currency.
What's Standard Lot Size? - Types of Forex Lots - Standard Lot
Forex Standard Lot Size Meaning
FX is traded using Standard Forex Lots. One standard lot is equal to 100,000 units of currency.
The FX Standard Lot is the trading size of the amount of currency that is to be bought or sold in online forex market by a trader.
The Standard Lot which is equivalent to $100,000 units worth of currency is not traded physically, but this $100,000 Dollar amount is represented by a standard 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.
The Price moves are calculated in Pips - Price Interest Points
100 Pips Makes 1 Cent, therefore the price moves get calculated using very small price movements - that is why standard lots are used.
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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 units of currency.
The FX Mini Lot is the trading size of the amount of currency that is to be bought or sold in online forex market by a trader.
The Mini Lot which is equivalent to $10,000 units worth of currency is not traded physically, but this $10,000 Dollar amount is represented by a mini contract.
Why Trade in Units of Currencies of $10,000 Mini Lots
Reason why such large units of currency are used is so as to increase value of a pip (profit) when trading using Mini Lots.
The Price moves are calculated in Pips - Price Interest Points
100 Pips Makes 1 Cent, therefore the price moves get calculated using very small price movements - which is why mini lots are used.
What's Micro Lot Size in Forex? - Types of Forex Lots - Micro Lot
Forex Micro Lot Size Meaning
FX is traded using Micro Lots. One Micro Lot is equal to 1,000 units of currency.
The FX Micro Lot is the trading size of the amount of currency that is to be bought or sold in online forex market by a trader.
The Micro Lot which is equivalent to $1,000 units worth of currency is not traded physically, but this $1,000 Dollar amount is represented by a micro contract.
Why Trade in Units of Currencies of $1,000 Micro Lots?
Reason why such big units of currency are used is so as to increase value of a pip (profit) when trading using Micro Lots.
The Price moves are calculated in Pips - Price Interest Points
100 Pips Makes 1 Cent, therefore the price moves get calculated using very small price movements - which is why mini lots are used.
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 units of currency.
The Forex Nano Lot is the trading size of the amount of currency that is to be bought or sold in online fx market by a trader.
The Nano Lot which is equal to $100 units worth of currency is not traded physically, but this $100 Dollar amount is represented by a nano contract.
Why Trade in Units of Currencies of $100 Nano Lots?
Reason why such big units of currency are used is so as to increase value of a pip (profit) when trading using Nano Lots.
The Price moves are calculated in Pips - Price Interest Points
100 Pips Makes 1 Cent, therefore the price moves get calculated using very small price movements - that is why nano lots are used.
