Lot size | what is a lot in forex | how to calculate lot

Lot size | what is a lot in forex | how to calculate a lot.

Lot size the leverage and the margin all work together when it comes down to the mathematical formulas.

But first, let’s take a look at each one separately and learn what they are.

A lot size is how you will determine what each pip you earn is worth.

And when you place a trade.

You have to trade little currency blocks or units these little blocks are called Lots.

A block is a certain size of currency traded.

In detail, a lot is the amount of the currency pair that you’re buying or selling.

There are three most common types of lots are the standard the mini and the micro lot.

One standard lot is equal to one 100,000 units of the base of the currency.

The other two types of lots are the mini and the micro.

One mini lot is equal to 10,000 units of the base currency.

And one micro lot is equal to 1000 units of the base currency.

Lot Size in Forex

How to calculate lot with pip value.

Micro Lot =  $1000 worth of currency controlled and Lot Size 0.10 or volume.

And it is equal to $0.10 per pip.

Mini Lot =  $10,000 worth of currency controlled and Lot Size 1 or Volume.

It is equal to $1 per pip

Standard Lot =  $100,000 worth of currency controlled and Lot Size 10 or volume.

It is equal to $10 per pip.

like that in below for GBP/USD. How many lots are worth in the GBP/USD.

1 Micro  lot = $0.10 per PIP.

1 Mini lot = $1 per PIP.

Standard  lot = $10 per PIP.

Next Topic What is Leverage and Margin.

Try Also Here,

85 / 100 SEO Score

About Muhammad Shahid

My name is Muhammad Shahid, MBA in Finance from IBA, University of Sindh, Professional Forex Trader & Trainer, I have taught more than 850 Students throughout the Sindh.

Check Also

Contractionary Monetary Policy

Contractionary Monetary Policy | Central Banks objectives.

Contractionary Monetary Policy | Central Banks’ objectives.Contractionary Monetary Policy?The intention of Monetary Policy.How CB accomplish …

Leave a Reply