Micro lot (forex)

Micro lot

In forex, a micro lot 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 currency
  • A mini lot = 10,000 units of base currency
  • A micro lot = 1,000 units of base currency
  • A nano lot = 100 units of base currency

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