Contributed article in our financial series. Enjoy! – Kimberly

Very few people have a clear knowledge of the term, “LOT”. We are going to familiarize you with the size of the lot, how you can trade with your small benefit in the Forex market and how to calculate your profit or loss in Forex. 

In Forex, the standard lot size is 100,00 units, which is 100k. There are other sizes of Forex lot. They are mini, micro, and nano. Here is a graph to show you the lot size.

Forex Lot size

From the previous article, you will have understood how the movement of pips contributes to your money-making in Forex. When the movement of your pip is positive, you make money. If it is negative, you lose money. You can take the benefits of pips, a very small incremental change of your trading to make a big money out of your trade. Those who prefer to trade commodities know very well that how a slight change in the pip value can alter their profit factors.Continue reading→