FOREX 101 - 4 TYPES OF LOT SIZES. Education

EUR/USDOANDA

Description

⋅ Nov 30, 2022 3:00 PM

What is a lot?

A ‘lot’ is a measure of a transaction amount.

It’s the minimum number of units of the base currency that you can buy or sell.

This gives traders more control over the exposure per trade.

There are four main types of Lot Sizes.

Lot size #1: Standard lot = 100,000 units of base currency
Risk per pip =$10 per pip

Lot size #2: Mini-lot = 10,000 units of base currency
Risk per pip = $1 per pip

Lot size #3: Micro-lot = 1,000 units of base currency
Risk per pip = $0.10 per pip

Lot size #4: Nano-lot = 100 units of base currency
Risk per pip = $0.01 per pip

Did you find this helpful? Let me know in the comments so I can do more Forex 101 tips. Ask any trading questions too :)

Trade well, live free.
Timon
MATI Trader

Comments

moutain786

⋅ Jan 4, 2023 3:30 PM

How do you factor spread in placing orders on currency pair specially in cases where spread is high like 4-6 pips? Thanks.

bogunbayo

⋅ Dec 3, 2022 1:37 PM

I think something important has been omitted: The value of a pip does not depend on the lot size alone. It also depends on the value of the currency pair