Lots Safe and Ideal For Day Trading

The definition of a lot in trading is the number of units in a unit of measure for trading transactions in certain financial instruments in the money market. Lots in forex function to make it easier for traders to calculate the profit or loss of a transaction by multiplying the lot size with the smallest unit of transaction size. The smallest unit in forex trading is called pips.

In forex, the number of units in a standard lot is 100,000 units of the base currency. If the base currency used is US Dollars, then it can be said that 1 lot is a nominal value 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

These lot sizes need attention, because they include trading rules that novice traders need to know:

1. One lot is the smallest size we can trade. That is, the bigger the lot, the bigger the trading capital we have to prepare.

2. The size of the lot that we trade will affect how much profit or loss from one transaction. The bigger the lot used, of course, the quicker the profit can be obtained, but the bigger the risk.

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