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