What are Lots in Forex and How to Calculate Lot Size?
Understanding Trading Lot Sizes in Forex
Trading lot sizes are standard units for trading in the Forex market and come in three types:
- Standard Lot: Equals 100,000 units of the base currency.
- Mini Lot: Equals 10,000 units of the base currency.
- Micro Lot: Equals 1,000 units of the base currency.
In Forex trading, transactions are conducted using these standard units. For example, you might buy 3 standard lots or 2 mini lots, but you cannot purchase fractions of a lot, such as one and a half lots.
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