The Importance of Lot Size in Trading

Lot is a standard unit for every forex transaction that a trader makes. Some traders refer to lots as quantity. Understanding lots in trading needs to be studied because it will greatly help traders in making transactions. The lot size will determine the size of the transaction carried out in the forex market. If the capital owned by the trader is large enough, then the trader can make forex trading transactions using a large number of lots. However, traders need to remember that the risk of loss is also large, although of course it is followed by a greater opportunity to make a profit.

In forex, the number of units in one standard lot is 100,000 units of the base currency. If the base currency used is US dollars, it can be said that 1 lot is a nominal amount consisting of $100,000. However, apart from standard lots, there are also mini lots, micro lots, and nano lots. The following is the order of the number of units:

1 standard lot = $100,000

1 mini lot = $10,000

1 micro lot = $1,000

1 lot nano = $100

Why Lot Size Must Be Pay Attention to?

The lot size is of course very important and must be considered for people who are in the world of forex trading. As well as the basic rules when a trader wants to learn lots in are:

Lot

Lot is the smallest unit that can be used in forex trading transactions. This means that if you want to trade using a larger lot size, you will need a larger margin.

Number of Lot

The number of lots traded will greatly affect the amount of profit or loss obtained from trading transactions. The larger the number of lots, of course, the trader can get a bigger profit as well. However, it must still be considered how the risk of automatic loss is also getting bigger.

More info:

Free soft copy material by contacting 081 258 066 174 Whatsapp/call

Private info / paid premium class (guided forever until get consistent profit and independent). Whatsapp/call 081 258 066 174 / 081 233 593 672 or direct access to our Website www.wijayatrading.com

Be careful with group and parties on behalf of Wijaya Trading, we never accept investments or entrust funds to be managed from investors for any reason. Official contacts number of Wijaya Trading only use the 2 numbers above.