# Easy Forex | Easy Forex Training and Spot Trading

## Easy Forex | Easy Forex Training and Spot Trading.

In this smooth forex video, I will cover these topics Lot Size, Margin, and Leverage.

Most forex brokers today provide up to four categories of lot sizes for the trader.

## Standard lot size easy-forex.

So a standard lot is equal as 100,000 units of the base currency.

For example, when you buy one standard lot of GBP/USD pair, you are purchasing 100,000 pounds with U.S. dollars.

1 standard lot = \$10 per pip.

## Mini Lot Size.

So a mini lot is equal as 10,000 units of the base currency.

For example, when you buy one mini lot of EUR/USD, you are purchasing 10,000 euros with U.S. dollars.

1 mini lot = \$1 per pip.

## Micro lot Size.

So a micro lot is equal as 1,000 units of the base currency.

For example, when you buy one micro lot of USD/CHF, you are purchasing 1,000 U.S. dollars with Swiss francs.

1 micro lot = \$0.10 per pip.

## Nano lot Size.

So a nano lot is equal to 100 units of the base currency.

1 nano lot = \$0.01 per pip.

## Leverage.

while I sum up the definition of leverage in four simple words with easy-forex way:

“Doing more with less.” and keep it in your mind that financial success almost always accomplishes through the use of leverage.

Brokers can offer a wide range of leverage, anywhere from 1:1 to 2000:1

Let ’s see how this works.

If the broker provides you with leverage of 100:1, instead of \$100,000, all you need to do is to pay \$1,000 to trade one standard lot.

Sometimes the \$1,000 is referred to as margin.

It is also the basis of how brokers refer to our trading account as a margin account.

Margin allows a trader to purchase a contract without the need to provide the full value of the contract.

In the example, \$1,000 was the margin required for you to trade \$100,000 on the leverage of 100:1. I was using a simple formula.

Margin required = Lot size / Leverage

for the example:
Margin required = \$ 100,000 / 100 = \$ 1,000

Margin percentage = Margin amount / Lot size
= \$ 1,000 / \$ 100,000
= 1 %

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