Lot size
read:2023/2/25 18:24:06
A lot is the smallest number of currency forextradingaccountstypeextradingforagoodliving.com">forex trading accounts in a single trade Most FX futures standard cashback forex are 100,forextradingaccountsregister units of a foreign currency such as the Euro, Swiss Franc, Australian Dollar or Canadian Dollar (￡62,500 units of British Pounds and ￥100,000 units of Japanese Yen) In professional interbank FX trading, the standard lot is usually $5,000,000 If a trader wishes to reduce the number of units traded, then he can specify a "small" trade size or a specific amount when obtaining the bid/ask price. If he wants to increase the number of units traded, then he will specify the "volume". The standard lot for spot retail trading is 100,000 units of foreign currency, but in recent years the contracted amount has The retail spot market only started to expand when the market introduced mini lots (10,000 units) and then the market introduced micro lots - only 1,000 units! For example, with a leverage of 1:10 and an exchange rate of 1.3500, EUR/USD micro lots can be traded on initial margin as low as $135. You wont see micro lots of corn or stocks, although you can buy 10 shares of stock at $13.50 per share without leverage Large stock traders can get 50% margin from the brokerage firm, but if your trading capital is only $135, the brokerage firm will not provide you with leverage Brokers in other countries can offer leverage of up to 1:500, 1:1,000, or even 1:2,000; this means that if you have $135, you can trade foreign currency units with a par value of $67,500 or more. Some of them offer nano accounts, where one lot is set to 100 units of foreign currency, e.g. 100 EUR or ￡100 GBP nano lots are also called 0.001 lots. Some people confuse mini-lots with micro-lots and micro-lots with nano-lots, but the first two are actually ten times as large as the confused latter: Standard lot: 100,000 units of foreign currency Mini-lot: 10,000 units Micro-lot: 1,000 units Nano-lot: 100 units In EUR/USD, a single pip move can result in the following gains/losses: Standard lot: 0.0001x100,000=$10.00 Mini lot: 0.0001x10,000=$1.00 Micro lot: 0.0001x1,000=$0.10 Nano lot: 0.0001x100=$0.01 Since our quotes have four dots and trailing dots after the decimal point, the Nano lot is perhaps a The logical development of a scalable concept is that newbies can learn to trade for just a few cents, but nano lots are designed to appeal to people with very little capital The traditional assumption is that anyone unwilling or unable to save enough money to manage an account of a certain size is not wise enough or capable enough to manage significant leverage in Forex, but we do have reports documenting the blowout of nano account holders over other size account holders Faster availability limits Other than standard or mini lots, each broker offers different lot types If you want to trade the IDR against the Turkish Lira, your broker may reduce the volume to micro or nano lots However, for higher volume crosses, such as EUR/GBP or EUR/CHF, you may be able to trade in any lot size