A lot in Forex
trading is the minimal traded amount for each currency transaction, a regular account’s one lot equals 100,000 units of the base currency. We will discuss mini and micro-accounts – those that allow trading in smaller lots.
This is simply a standard unit of measurement – when you start off you may choose 10,000 units as your desired volume and because forex trading is leveraged, you don’t need a lot of money in your account to trade the EUR/USD. Currency pairs’ leverage can get to a ratio of up to 50:1.
Three Types of Lots
This type of a lot has an approximated amount of $1000 worth of foreign currency.
Mini slot gets up to $10000 worth of Foreign Currency
The standard slot gets up to $100000 worth of Foreign Currency
You can control a large position with a small amount of money. The Prons and Cons and this is it has substantial profits and can cause substantial losses.
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