What is Forex Mini, Micro and Standard Lot?
A Forex Lot is the amount of currency you buy or sell. Say for example you wish to buy 100,000 USD, 100,000 is basically your trade size.
Forex Lot is basically representation of Trade Size in a different format. A Standard Lot would represent 100,000 of any currency, whereas a Mini Lot represents 10,000 and a Micro Lot represents 1,000.
So essentially 10 Mini Lots make 1 Standard Lot and 10 Micro Lots make 1 Mini Lot.
100 Micro Lot = 10 Mini Lot = 1 Standard Lot
When you place orders online you should know what account you have and how you broker lets you trade. For example with MBT, you can have an Standard Account and still place Mini Lots. On the other hand with Dukascopy you can only trade Standard Lots.
You may also want to read about Different Type of Forex Accounts.
You have explained what is forex lot precisely but in appropriate way.
great explanation about different lot sizes. Your blog is an important resource for every new beginner in forex trading. I recommend it to my friends.
Why Forex…???
1- Forex is an online home based business that doesn’t need referring, recruiting and advertising. You only deal with the currencies through the Internet. So you as forex broker will not have to reply any email, make any phone call and spend any money on advertising.
2- If you learn the Forex properly, you can make a lot of money. Forex can be your full time job that makes thousands of dollars for you every month. As a forex broker you’d have to emphasize again that if you start working on Forex before you learn it properly, it can be risky and you will lose your money. It is like the driving. If you drive a car before you know how to drive, you will hurt yourself and others but if you learn it properly first, it will be pleasant and funny.
3- You can make a lot of money by spending a small amount of money. Unlike other investments like stock market that you have to invest a lot of money to make a reasonable profit, you can make a good income through investing small amount of money. For example, with a $5000 account, you can make about $5000 per month. Of course it highly depends on the way that you trade and the strategy that you follow but good and experienced traders can double their money every month.
4- Forex – and of course stock market – are the only businesses that competition has positive effect on them. It is amazing, isn’t it? Competition is the biggest problem in all other businesses but in Forex, it helps the traders to make more money. Why? Supply and demand are the factors that determine the price in any market. When there are too many buyer and sellers, the price volatility will be much higher and the market will be more dynamic. The price will go up and down more frequently and this is what we need to make money. When the price goes up we buy and when it goes down we sell and make profit. So if you as forex broker choose Forex as your business, you will not have to be worried about competition.
1 lot = make $10 per pip profit
100 pips = 100% return on 100k:1 margin
one thing i like about forex, it is autopilot, we can analyst the market and put target to get profit
How can I check the specifications for standard accounts?
perfect!..I also want to make a post about the specifications of that 3 lot.
–christian