Now that we understand a little more about currency pairs and how their value is derived, lets talk about how they are traded! Currency pairs are traded in what we call "LOTS".
A LOT is the amount of the currency pair that you're buying or selling.
The three most common types of LOTS are the STANDARD LOT, the MINI LOT, and the MICRO LOT.
One STANDARD LOT is equal to 100,000 units of the BASE CURRENCY.
Here are a few examples.
The other two types of lots are the "MINI" and the "MICRO". One MINI LOT is equal to 10,000 units of the BASE CURRENCY.
Here are some examples.
One MICRO LOT is equal to 1,000 units of the BASE CURRENCY.
Here are a few examples.
Now you know what a FOREX LOT is! Stay with me as we go further to learn the basics of forex. See you in the next blog. God Speed ^_^
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