What is Lot? > FOREX EDUCATION

Go to body text
FOREX EDUCATION
With hundreds of Forex brokers to choose from, selecting the right one can be both
challenging and time consuming. To ease the process, we’ve tested and reviewed dozens of the


Show more >>

FOREX EDUCATION

What is Lot?

page info

writter OnlineForex date17-06-15 01:59 read485 comment0ea

list

3d18892891009e05fe83b7002c174d65_1497459570_443.jpg
 

Let's say there is a quote for USD/CAD at the exchange rate of 1.4850. You probably wonder if it is possible to buy 1USD or 12USD… in fact you probably think that you can buy any "quantity" of USD. The answer is NO, you cannot simply buy any "quantity" of a currency. Similar to a pack of eggs, trading currency in FOREX is done in lots.

Standard lot size is USD $100,000.

Mini lot size is USD $10,000 

You can buy as many lots as you want – one, two, or a hundred. One lots means you are buying USD $100,000. Two lots means you are buying USD $200,000 and so on and so forth. There are of course FOREX brokers that offer smaller lots. 

 What are such large amounts for? Currencies are measured in pips (the smallest increment of that currency). To observe any major profit or loss, large amounts of a currency must be traded. 

comment list

no comment

TOP FOREX BROKERS
TOP ONLINE FOREX BROKERS
FOREX NEWS

Copyright © 2018 Online-Forex-Brokers. All rights reserved.| Sitemap