What is lot Volume/Lot
The lot is a lot easier. But when you go as a unit, it will be very difficult for you. So we will not go here as a unit but try to understand it simply. Check out the calculation of the unit in pips section. In the forex market, we can get every pips movement. That means, if the price is 1.1710 to 1.1720, we will get 10 pips or loss. Through the lot/volume, we will determine how much profit or loss we have when every pipe are favorable or incompatible.
We are divided into 3 categories for forex brokers.
1. Standard lot broker
2. Mini Lot Broker
3. Micro Lot Broker
In Standard lot broker 1 lot = $ 10 / pips But 1 lot in mini lot broker = $ 1 / pips And 10 lots = $ 1 / pips in micro lot broker.
So, if you open trade with 1 lot in Standard Lot Broker and 10 pips will suit you, your profit is $ 10×10 = $ 100. Even if the loss is $ 100.However, if you open trade with 1 lot in the mini-lot broker and 10 pips are appealing to you, then your profit is $ 1×10 = $ 10. Even if the loss is $ 10.
And if you open trade with 1 lot in the micro lot broker and 10 pips are appealing to you, then your profit is $ 0.1×10 = $ 1. Even if the loss is $ 1.
Standard lot broker:
1 standard lot = $ 10 / pips
0.1 standard lot = $ 1 / pips
0.01 standard lot = $ 0.10 / pips
10 standard lot = $ 100 / pips
Mini Lot Brokerage:
1 mini lot = $ 1 / pips
0.1 mini lot = $ 0.10 / pips
0.01 mini lot = $ 0.01 / pips
10 mini lots = $ 10 / pips
Micro Lot Brokerage:
1 micro lot = $ 0.10 / pips
0.1 micro lot = $ 0.01 / pips
0.01 micro lot = $ 0.001 / pips
10 micro lots = $ 1 / pips
Surely you understood the difference between Standard Lot, Mini Lot and Micro Lot. Brokers fix their lot size like convenience.
Most brokers will allow you to trade in the lowest 0.01 lot. In other words, you can take a minimum pip value of 10 cents in standard lot broker. But in mini lot broker, you can take the minimum pip value 1 cent. And with Micro Lot Broker you can take a minimum pip value of 0.1 cents. So if your capital is low, then you can trade in a mini lot or a micro lot broker with low risk.
Not only that you can trade in 1 lot, 0.1 lot or 0.01 lot if you want, but you can also trade in 2.5 lots, custom lots of 1.3 lots.
How do I understand my broker micro lot, mini lot or the standard lot?
You can trade on micro-trading in the trading point micro account. InstaForex, HotForex, LightForex etc. Brokers’ mini lot broker. FBS, F. X Optimizer etc. Brokers are standard lot broker. If you do not know your broke rite micro lot, mini lot or standard lot, then ask the broker’s live support question. Many times their websites are also available or open a demo account with them and open trade with 1 lot. If you see that every pipe change in profit or loss by $ 10 dollars, then it will be considered standard lot broker. And if you see that changing $ 1 dollars, then it will be a mini lot broker. If you change by 10 cents, it will be a micro lot broker. But some broker types have different lot size in each account type.