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Choosing The Best Lot Size
HomeTradingChoosing The Best Lot Size
Trading

Choosing The Best Lot Size

Gertrude ButlerDecember 17, 2018
posted on Dec. 17, 2018 at 8:03 am

Selecting Lot Size

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It is a lot references that the smallest available you can place especially when you’re trading. It is so important to bear in minds that the lot size can affect the risk you’re taking with and can impacts on how much the market move will affect especially on your account.

And when you are finding the best lot size with risk management calculator or any of the outputs will help you in determining the desired lot size according to the sizes of your accounts as well as it will help you to understand the risks of your currency trading account.

Choosing The Best Lot SizeMicro Lots
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Most of the brokers are using micro lots, it is the smallest tradable lot of about 1000 units of your accounting funding currencies. When trading a dollar-based pair, then a 1 pip would be equal to 10 cents. This is also the best especially for the beginners who are needs to be more comfortable when trading.

Mini Lots.

Aside from the micro lots, there’s a mini lot that’s about 10K units of your account. When trading dollar-based account and pair, then when trading that each pip would be worth $1 dollar. And if you’re a beginners or about to start, this would be a perfect chance for you to start.

Standard Lots.

This lot consists a 100K units. And when you’re trading it into a dollar, it would be $10 dollar for each pip. This standard lots are for the traders who are in an institutional-sized account. Most of the traders are choosing the mini lots or the micro lots for trading. BUT if the traders are keeping their lot size for their account, this will help them to survive a long term.

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