Thread: Lot size

Lot size is a big factor in Forex trading. In Forex there are huge amount of risk. So everyone specially the beginner should choose a small size of lot. Maybe you win one day by taking risk but other days its 70% chance that you might be loose. As a Forex trader you must be understand the risk management. Now I work with an AFX Group and my risk percent is 2% so that one bad trade can’t harm me.

Traders especially new babies are in confusions regarding their trading lost and they may want to invest larger amount to earn good profit. But we can’t ignore the fact that high investment leads to bigger risk. And at the initial level we should not take significant risk since it can divert our mind and forced us to withdraw us from the market and my broker AAFX is providing adequate trading facilities to work with mini to standard lots.

Most amateur traders jump to open big lot size as it brings immense profit. But a big lot size can transform into a bad dream. You can get a margin call. Don't risk more than 2% of your capital. I also used to take big lot and losing money then my account manager from MaximusFx has impacted me to fathom that I was conferring tremendous mistake. The broker also provides low spreads and instant deposit and withdrawal facility.

Trader cannot ignore lot size in forex trading. While trading it is a big fact. There are different type of trader. Some are day trader and some big investor or long term trader. The trader who are professional can invest in big lot. But as a novice trader I started with micro lot investment. And for my investment TopFX24 allows me to invest with only 500 USD. They are also providing their trader 1: 500 leverage facility with proper money and risk management.

A standard lot is the equivalent to 100,000 units of the base currency in a forex trade. A standard lot is similar to trade size. It is one of the three commonly known lot sizes and the other two are mini-lot and micro-lot. I always trade with small lot indeed and with Trade12 I have narrow floating trading spread in maximum of the pair. I have also high trading leverage and tightest margin level with the broker.