In financial
markets securities are generally traded in lots. A lot is a specific number of
units of an instrument. For example, in the Forex market, one standard lot is 100,000
units of the base currency. The lot size
isn’t fixed but can be decided by the trader. If you can’t afford to trade a
standard lot of the base currency, then you can buy a mini lot, which is 10,000
units of the base currency or even 1,000 units, which is generally the smallest
lot size in Forex called micro lot. Lot Size
ExplainedYou can also
trade in custom lot size like 1.20, which represents 1 standard lot and 2 mini
lots, giving you 120,000 units of the base currency. In the stock market a
round lot generally represents 100 shares, but even there you can trade what
are called odd lots, which represent less than 100 shares. Choosing the
right lot size is very important for risk management because a lot too big can
wipe you out fast and a lot too small may not take full advantage of a good
trading opportunity.
In financial
markets securities are generally traded in lots. A lot is a specific number of
units of an instrument. For example, in the Forex market, one standard lot is 100,000
units of the base currency. The lot size
isn’t fixed but can be decided by the trader. If you can’t afford to trade a
standard lot of the base currency, then you can buy a mini lot, which is 10,000
units of the base currency or even 1,000 units, which is generally the smallest
lot size in Forex called micro lot. Lot Size
ExplainedYou can also
trade in custom lot size like 1.20, which represents 1 standard lot and 2 mini
lots, giving you 120,000 units of the base currency. In the stock market a
round lot generally represents 100 shares, but even there you can trade what
are called odd lots, which represent less than 100 shares. Choosing the
right lot size is very important for risk management because a lot too big can
wipe you out fast and a lot too small may not take full advantage of a good
trading opportunity.
In financial
markets securities are generally traded in lots. A lot is a specific number of
units of an instrument. For example, in the Forex market, one standard lot is 100,000
units of the base currency.
The lot size
isn’t fixed but can be decided by the trader. If you can’t afford to trade a
standard lot of the base currency, then you can buy a mini lot, which is 10,000
units of the base currency or even 1,000 units, which is generally the smallest
lot size in Forex called micro lot.
Lot Size
Explained
You can also
trade in custom lot size like 1.20, which represents 1 standard lot and 2 mini
lots, giving you 120,000 units of the base currency. In the stock market a
round lot generally represents 100 shares, but even there you can trade what
are called odd lots, which represent less than 100 shares.
Choosing the
right lot size is very important for risk management because a lot too big can
wipe you out fast and a lot too small may not take full advantage of a good
trading opportunity.
Travelling the world, from the Middle East to Asia, the UF AWARDS will now rock the stage in Bangkok as the UF AWARDS APAC 2023 voting round is underway.
