It is impossible to trade forex without knowing the right size of lot to work with. A forex broker’s lot can be explained as the least transaction amount for a specific currency pair. A forex trader cannot choose his lot randomly. The size of forex lot varies depending upon the trading style. However, the right approach is to choose the smaller lot. Smaller forex lot size will help you to trade currencies easily. Risk management is comparatively low if you will work with small lots and you can concentrate more on your trades as well.
Micro, mini and standard are the three types of lots that are accessible in forex market. Each lot has their advantages and disadvantages. Micro is the smallest Forex broker lot that is available on the market. Micro lot is specially designed for beginners, and will help them learn the basics of forex trading system. Mini forex broker lot is an expensive version of trading. It normally offers 10,000 units of your base currency. The possibility of loss is high and is considered highly inflammable lot. If you are willing to take the risk, then mini forex lot is for you. Standard forex broker lot here means the biggest lot in Forex trading. A standard lot normally offers 1000,000 unit of your base currency. The profit is big at the same time risk too. The minimum amount you will require to open a standard lot is $25,000.
In order to conclude, mini and micro are the easily switchable forex lot. Think practically and choose your right forex broker lot.