What is a LOT in Forex And How Its Used For Trading?
The Informed Trader Series:
BITE -SIZED LEARNING FOR NEW TRADERS
Currency pairs are traded in pairs. We know that by now.
While placing your trade, the broker platform will ask you about "How many lots do you want to trade with"?
“LOTS” represents the amount that you are buying or selling. Think of it like kilos, or pounds when you are buying vegetables or litres when you are buying gas/petrol for your car..
In the trading world, Lots are the amount you want to buy or sell.
The three most common types of lots are :
STANDARD . MINI .MICRO
One standard lot =100,000 units of the base currency,
Example: 1 lot of EURUSD would be equal to 100,000 euros.
One mini lot = 10,000 units of the base currency Example: 1 mini lot of GBPUSD would be equal 10,000 British pounds.
Of course, we show you in more details (step-by-step) inside our basic course- Activate
1 micro lot is equal to 1,000 units of the base currency in your currency pair. Example: 1 micro lot of AUD/USD is equal to 1,000 US Dollars. Now, you don't have to have 100000 to trade because you can use leverage ?
What is Leverage.. Stay tuned for the next blog.
Bubli
"The most important investment you can make is educating yourself."- Warren Buffett
IF YOU WOULD LIKE TO LEARN HOW TO TRADE THE FOREX MARKET OR ENHANCE YOUR TRADING JOURNEY, THEN THIS IS A GOOD PLACE TO START.
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Author
Bubli
Chart Analyst | Forex Trader
I trade the forex market online while creating the work-home balance lifestyle . I help success-driven budding traders do the same via my ongoing support inside our forexdiva community. Music, Nature and Sports inspires me. ______________________ I placed my first trade in 2010. Largely self taught but qualified as a chart analyst later with Society Of Technical Analyst UK and recognised as a "Certified Financial Technician" (CFTe) by the "The International Federation Of Technical Analyst," USA . _____________________ My telegram group "ForexDiva 55pips" provides free trade setups. ____________________ Our "Next Level" ( paid subscription) members get a proven trading strategy, high probability trade setups, our bespoke indicator and unlimited trade step ups in forex, crypto, indices and commodities while having access to me as they trade along.