Lot is a measure or quantity
increment acceptable to or specified by the party offering to buy or
sell. Used also as an alternative term for lot quantity.
According to size, Forex broker is divided into three types.
1. Standard Lot Broker
2. Mini Lot Broker
3. Micro Lot Broker
At standard lot broker,
10 lot = $100/pip,
1 lot = $10/pip
.1 lot = $1/pip
.01 lot = $.1/pip
At mini lot broker,
10 lot = $10/pip,
1 lot = $1/pip
.1 lot = $.1/pip
.01 lot = $.01/pip
At micro lot broker,
10 lot = $1/pip,
1 lot = $.1/pip
.1 lot = $.01/pip
.01 lot = $.001/pip
A standard lot has the following characteristics: * 1,000 USD
* Leveraged at the rate of 100 to 1
* Total controlled currency of $100,000
* Leveraged at the rate of 100 to 1
* Total controlled currency of $100,000
A mini lot has the following characteristics: * 100 USD * Leverage of 100 to 1 * A total control of $10,000 of the base currency
A lot has no expiration date or time restraints due to the automatic roller policy.
In
a forex mini-account, the lot or contract size traded are 10,000 of
the base currency whereas for a regular forex account, the lot or
contract size traded are 100,000 of the base currency. Therefore, the
mini-account contract is 1/10th the size of a standard forex contract
The smaller the lots size traded, the lower will be profits, but also the lower will be losses.
No comments:
Post a Comment