Lot / Volume:
Lot’s a lot easier. But when you go as a unit, it may seem complicated to you. So we will not go here as a unit but will try to explain Lot / Volume simply. See BabyPipes on the unit for calculations.
In the Forex market, we can profit from every peep’s movement. That is, if the price goes from 1.1710 to 1.1720 we will gain 10 pips or lose. Through the lot/volume we will determine what we will gain or lose if each pip is favorable or hostile to us.
We are splitting the Forex brokers into 3 parts for convenience.
- Standard lot broker
- Mini lot broker
- Micro Lot Broker
In the standard lot broker 1 lot = $ 10 / pips. But in the mini lot broker 1 lot = $ 1 / pips. And 10 lot = $ 1 / pips in the micro lot broker.
Conversely, if you open a trade with 1 lots at a standard lot broker and 10 pips go to suit you, then your profit is $ 10x 10 = $100 . Uniform loss will be $ 100.
However, if you open a trade with 1 lots in a mini lot broker and 10 pips go to suit you, then your profit is $ 1×10 = $ 10. Uniform loss will be $ 10.
And, if you open a trade with 10 lots in a micro lot broker and 10 pips go to suit you, then your profit is $ 0.1x 10= $ 1. Uniform loss will be $ 1.
Standard Lot Brokers:
- 1 standard lot = $ 10/ pips
- 0.1 standard lot = $ 1 / pips
- 0.01 standard lot = $ 0.1/ pips
- 10 standard lot = $ 100 / pips
Mini Lot Brokers:
- 1 mini lot = $ 1 / pips
- 0.1 mini lot = $ 0.10/ pips
- 0.01 mini lot = $ 0.01/ pips
- 10 mini lot = $ 10 / pips
Micro Lot Broker:
- 1 micro lot = $ 0.10 / pips
- 0.1 micro lot = $ 0.01 / pips
- 0.01 micro lot = $ 0.001 / pips
- 10 micro lot = $ 1 / pips
Must have understood the difference between standard lot, mini lot and micro lot. Brokers adjust the lot size to their advantage.
Most brokers will allow you to trade at a minimum of 0.01 lots. That is, in a standard lot broker you can get a minimum peep value of 10 cents. But in a small Lot / Volume broker, you can get the minimum peep value at 1 cents. And at the micro lot broker, you can get a minimum peep value of 0.01 cents. So if your capital is low, then you can trade with low risk on a mini lot or micro lot broker.
Not only that you can trade in 1 lots, 0.1 lots or 0.01 lots, you can also trade in custom lots like 2.5 lots, 1.3 lots.
How do I know my broker is a micro lot, mini lot or standard lot?
You can trade in a micro-lot on a trading point micro account. Brokers like InstaForex, HotForex, LightForex, etc. are the mini lot brokers. FBS, f. X. Brokers like Optimax, etc. are standard Lot / Volume brokers. If you do not know if your broker is a micro lot, mini lot or standard lot, then ask the broker’s live support. Many times they are also given on the website. Or open a demo account with them and open a trade with 1 lots. If you see that the profit is losing $ 10 per pips change or loss, then this is standard lot broker And if you see that 1 dollars are changing, then this is a mini lot broker. If you change by 10 cents then you will understand that micro lot broker. But some brokers have different lot sizes for each account type.