Micro lot (forex)

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    Micro lotIn forex, a micro lotIn forex trading, a lot is the standard unit to measure the... More equals 1/100th of a lot or 1,000 units of the base currency.

    A micro lot usually is the smallest position size that you can trade with. As new traders often do not have much in the way of starting capital, trading micro lots is a good way to keep the overall exposure of their trading account small. Also, see money management.

    If one micro lot of the EUR/USD is being traded, each pip would be worth $0.1, as opposed to $10 for a standard lot.

    The following are the quantities typically used in the forex market:

    • A standard lot = 100,000 units of base currencyWhat is a base currency versus a quote currency? The bas... More
    • mini lot = 10,000 units of base currencyWhat is currency? Currencies are the generally accepted me... More
    • A micro lot = 1,000 units of base currency
    • A nano lot = 100 units of base currency

    Learn more about sizing your trades: