Standard Lot

The forex market is very liquid, Donc, par exemple avec un levier de et un investissement de 10 euros, tu mets sur le Considering that the value of a trade position as well as the movement of the currency pair in pips is what determines the level of profit or loss after a forex trade, what is the monetary value of the forex lot? The value of shares and ETFs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. A propos des lots?

A Forex lot is a trading term used to describe the size of a trading position in Forex with reference to a standard of , units of the base currency. The benchmark for forex trades is , units of the base currency, and since this trade size is the standard against which other trade sizes are measured, this is referred to as one Standard Lot.

Definition

We refer to a position size calculator to do the Maths for us:. We can see clearly that the trader can only use a maximum of 15 micro lots 0.

If the trader intends to take more than one trade, then the lot size must be divided by the number of trades to come up with a new lot size measurement which will stick to the limits of risk. We can see that the forex lot is an integral part of what traders must consider before putting on a trade. Traders must use lot sizes that conform to acceptable risk limits. Lot sizes will therefore have to be considered when choosing a broker, when funding the account and definitely before putting on a trade position.

Broker choice is important as some brokers may only permit certain trade sizes on their platform. Sufficient funds will also be needed to assume certain levels of forex position sizing. Mail will not be published required. Leave a Reply Click here to cancel reply. The Four Demons of Trading Psychology.

Choosing the Right Forex Broker. Pips and Lots Currency traders quote the value of a currency pair, and trade sizes, in pips and lots. Margin and Leverage Another important concept in currency trading is the twin phenomenon of margin and leverage. How to read a currency quote Lesson 2: Currency Pairs and Their Characteristics Lesson 5: Fundamental Analysis vs Technical Analysis Lesson 6: Forex Technical Analysis Lesson 7: Forex Fundamental Analysis Lesson 8: We use cookies to enhance your visit on our website.

If you continue to use the website, we assume that you agree to the use of cookies. Lot has a particular significance in relation to IG's platform. In these cases, traders will use a lot: It means that investors have a standardised contract and always known how much of an asset they are trading when they open a position.

A lot can refer to any asset class or financial instrument. In options trading they are often standardised across the board: IG uses lots when CFD trading, where a single contract can be equal to a larger amount of the underlying asset. CFDs are a leveraged product and can result in losses that exceed deposits.

You do not own or have any interest in the underlying asset. The value of shares and ETFs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in.

What the heck is leverage?

In the past, spot forex was only traded in specific amounts called lots, or basically the number of currency units you will buy or sell. The standard size for a lot is , units of currency, and now, there are also a mini, micro, and nano lot sizes that are 10,, 1,, and units respectively. forex lot definition Fxcc Forex Review So essentially, when you a forex scalp trader, you are not looking for big profit targets, you are looking for very small profit . A standard lot is the equivalent to , units of the base currency in a forex trade. A standard lot is similar to trade size. It is one of the three lot sizes; the other two are mini-lot and micro-lot.