Illustration of Capital and Lot Calculation for Forex Trading

Determining the size of the lot position or better known as position sizing is one of the important factors for the development of a trading career. Once a trader enters the wrong lot number, hundreds or even thousands of dollars that the trader has collected may immediately disappear if the trader ends up losing.

Lot is the number of units traded. Size 1 lot = 100,000 units if the trader's account is a standard account. If the account is a mini lot then 1 lot = 10,000 units. If the account is a micro lot then 1 lot = 1,000 units. In the past, trading could only use a standard account where 1 lot = 100,000 units, so to be able to start trading forex, you needed a large enough capital to buy a minimum number of lots. But as time goes by, the interest of traders in the forex market is increasing. Many new traders enter the market, so many brokers are competing to create or innovate with the mini lots and micro lots.


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