What is a lot?

 Lot — a unit of the volume of a currency purchase or sale transaction on the Forex market. This value was accepted as standard among traders. Lot — 100,000 units of the currency that is traded. Let's say we can say that there is a lot in euros and there is a lot in dollars. The name does not change when changing the currency. But the first currency in the pair is called a lot. For example, in the FIB pair (professional slang for the Euro / Dollar pair), a lot will be placed in euros due to the fact that the main currency of the position is the Euro.

There are 3 different types of lots:

Standard;
Mini lot;
Micro-lot.

They are created because each broker treats the client with understanding and understands who can bet large amounts and who can't. In General, the Forex market is equipped with excellent money management, which helps traders to trade even if they have $ 100 in their account. For this purpose, a leverage has been created that helps players trade for amounts that are tens or even hundreds of times higher than the Deposit rate on the broker's client's account. Also, brokers ' services consist in the fact that the client does not have to buy one lot to enter the desired position. Many brokers allow you to buy even a hundredth part of the lot, i.e. 0.01. It turns out that with a leverage of 1:50 and the ability to buy a hundredth part of the lot, you can spend 50 times less than $ 1000, namely 20 bucks. Agree, a very pleasant thing, especially for beginners.

It was the introduction of such a brokerage system that allowed everyone to try their hand at the foreign exchange market without having to spend an amount equal to the lot amount — $ 100,000.

But some brokers resort to desperate steps in order to unwind: they offer to trade on ""light"" packages that are equal to 0.001 lots, namely 10 units of currency. These small shares are called the minimum offer on the Forex market, because there is nothing below it. Mini-and micro-lots are offered only to those traders who have just replenished their Deposit and have not yet played on a real account, as well as to those who have replenished the Deposit for a minimum amount or up to $ 1000.

Standard lots-trading of real trading sharks. At the same time, they can trade this money, resorting only to the leverage of 1:5 or 1:10. That is, it is not difficult to guess that they have tens of thousands of dollars in their accounts.

Now closer to trading

When trading a standard lot, a trader can lose or earn 10 units of currency on one point (depending on which direction he went). But with different lots — there are different risks of losing the Deposit. With a mini-lot, the trader loses or earns 1 unit of currency, and with a micro-0.1 unit. Therefore, initially decide which lot you will be able to do. After all, if you drain the entire Deposit at the beginning of the game, you will not want to return to it.

Novice traders are advised to trade on minimum deposits with micro lots, so that the amount of their order is no more than 1% of the Deposit. Next, you should improve your skills and bet large amounts on large lots, then you can start earning on Forex. Isn't this what you wanted when you started studying the market?