Lot and Volume in Forex Market

Posted by: | Posted on 4:10:00 PM | Post Categories

In the Forex market we can gain every pips movement. In other words, if the price goes from 1.1710 to 1.1720, we will have a gain or loss of 10 pips. By Lot / Volume we will determine how much profit or loss we will get if every pips goes in our favor or against us.

1 lot in standard lot broker = $ 10 / pips. But in mini lot broker 1 lot = $ 1 / pips. And 1 lot =$ 0.10 / pips in micro lot broker.

So, if you open a trade with 1 lot on a standard lot broker and 10 pips goes in your favor, your profit is $ 10x10 = $ 100. Even if there is a similar loss, it will be $ 100.

But, if you open a trade with 1 lot on a mini lot broker and 10 pips goes in your favor, your profit is $ 1x10 = $ 10. Even if there is a similar loss, it will be $ 10.

And, if you open a trade with 1 lot on a micro lot broker and 10 pips goes in your favor, your profit is $ 0.1x10 = $ 1. Even if there is a similar loss, it will be $ 1.


Standard Lot Broker:

1 standard lot = $ 10 / pips
0.1 standard lot = $ 1 / pips
0.01 standard lot = $ 0.10 / pips
10 standard lots = $ 100 / pips

Mini Lot Broker:

1 mini lot = $ 1 / pips
0.1 mini lot = $ 0.10 / pips
0.01 mini lot = $ 0.01 / pips
10 mini lots = $ 10 / pips

Micro Lot Brokers:

1 micro lot = $ 0.10 / pips
0.1 micro lot = $ 0.01 / pips
0.01 micro lot = $ 0.001 / pips
10 micro lots = $ 1 / pips 


Nano Lot Brokers:

1 nano lot = $ 0.01 / pips
0.1 nano lot = $ 0.001 / pips
0.01 nano lot = $ 0.0001 / pips
10 nano lot = $ 0.1 / pips 

Most brokers will allow you to trade a minimum of 0.01 lots. That is, you can get a minimum pip value of 10 cents at a standard lot broker. But in Mini Lot Broker you can get the minimum pip value of 1 cent. And in Micro Lot Broker you can get the minimum pip value of 0.1 cents. So if your capital is low, you can trade with low risk in mini lot or micro lot brokers.

Not only can you trade 1 lot, 0.1 lot or 0.01 lot but also you can also trade custom lots like 2.5 lots, 1.3 lots if you want.  


 


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