As necessary units of volume and lot in Forex

Lot is a very simple thing. But you will find it difficult if you want to calculate it in “Unit”. We will not proceed to unit. We will try to learn it easily. There are four types of lots. They are: 1. Standard

                        2. Mini

                        3. Micro

                        4. Nano

Lot’s are represented here in unit for general knowledge. No need to memorize it.

Lot	Number of Units
Standard	100,000
Mini	10,000
Micro	1,000
Nano	100

In Forex Market we can make profit in every single movement. If the price goes from 1.3540 to 1.3560 we may make 20 pips profit. By lot/volume we fix that will we make profit or loss? If the pip goes against us, we are sure to make loss. But we will make profit if the opposite happens. But the question is that how much profit or loss we will get?

For discussing this we will have to know about Forex brokers. They are of 3 types.

1. Standard lot broker
2. Mini lot broker
3. Micro lot broker

Now it’s time to calculate. In standard lot broker, 1 lot = $10/pips. In mini lot broker, 1 lot = $1/pips and in micro 10 lot = $1/pips. This means that if you open your trade in standard lot broker by 1 lot, you will get profit of  $10x$20= $200. Opposite will happen if you make loss.

But, if you open your trade in mini lot broker by 1 lot, you will get profit of  $1x$20= $20. Opposite will happen if you make loss.

On the other hand, if you open your trade in micro lot broker by 1 lot, you will get profit of  $0.1x$20= $2. Opposite will happen if you make loss.

For Standard lot broker:

® 1 standard lot = $10/pips

® .1 standard lot = $1/pips

® .01 standard lot = $0.10/pips

® 10 standard lot = $100/pips

For mini lot broker:

 ® 1 mini lot = $1/pips

 ® 0.1 mini lot = $0.10/pips

 ® 0.01 mini lot = $0.01/pips

 ® 10 mini lot = $10/pips

For 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

So, all of you might have understood the difference between standard, mini and micro lot. Different brokers fix their lot differently. So, you should know about the trading lots of your broker and trade accordingly. Wish you a very happy trading life.