Types of Contract Size in Forex - What are the Different Types of Forex Contracts?
Forex contract 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 Contracts are:
- Standard Forex Contract
- Mini Forex Contract
- Micro Forex Contract
- Nano Forex Contract
Forex Standard Contracts for standard contracts the number of currency units traded using this standard forex contract is 100,000 units of currency.
Forex Mini Contracts for mini contracts the number of currency units traded using this mini contract is 10,000 units of currency.
Forex Micro Contracts for micro contracts the number of currency units traded using this standard contract is 1,000 units of currency.
Forex Brokers also implement a fourth option for trading contracts known as forex nano contracts
Forex Nano contracts - for forex nano contracts the number of currency units traded using this nano contract is 100 units of currency.
What is Standard Contract Size in Forex? - What is Standard Forex Lot Size?
Forex Standard Contract Size Meaning
Forex is traded using Standard Forex Contracts. One standard forex contract is equal to 100,000 units of currency.
The Forex Standard Contract is the trading size of the amount of currency that's to be bought or sold in online forex market by a Forex trader.
The Standard Contract 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 Contracts
Reason why such large 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 contracts.
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 contracts are used.
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What is Mini Contract Size in Forex? - What is Forex Mini Lot?
Forex Mini Contract Size Meaning
Forex is traded using Mini Contracts. One Mini Contract is equal to 10,000 units of currency.
The Forex Mini Contract is the trading size of the amount of currency that's to be bought or sold in online forex market by a Forex trader.
The Mini Contract 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 Contracts
The reason why such big units of currency are used is so as to increase value of a pip (profit) when trading using Mini Contracts.
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 contracts are used.
What is Micro Contract Size in Forex? - What is Forex Micro Lot Size?
Forex Micro Contract Size Meaning
Forex is traded using Micro Contracts. One Micro Contract is equal to 1,000 units of currency.
The Forex Micro Contract is the trading size of the amount of currency that's to be bought or sold in online forex market by a Forex trader.
The Micro Contract 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 Contracts?
The reason why such big units of currency are used is so as to increase value of a pip (profit) when trading using Micro Contracts.
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 contracts are used.
What is Nano Contract Size in Forex? - What is Nano Forex Lot?
Forex Nano Contract Size Meaning
Forex is traded using Nano Contracts. One Nano Contract Forex is equal to 100 units of currency.
The Forex Nano Contract is the trading size of the amount of currency that's to be bought or sold in online forex market by a Forex trader.
The Nano Contract 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 Contracts?
The reason why such big units of currency are used is so as to increase value of a pip (profit) when trading using Nano Contracts.
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 contracts are used.
