Lot on Forex Trading
Lot on Forex Trading is the minimum amount (unit) that is allowed to buy currency pairs .Examples in everyday life, by fish sellers you are only allowed to buy a number of 12 tails and multiples there of. Now we can call this number 12 heads a dozen units used in each transaction.So you can only buy fish in a volume of 1 dozen, 2 dozen, and so on with a multiple of 1 dozen.
Not only in the forex market on the stock market, the unit of purchase also uses lot units. With 1 lot consisting of 100 shares (when this post was written) and we can only buy shares in multiples of 1 lot.
Now in the forex market, too, when we will buy a currency pair, for example GBP / USD, the volume is also a lot like the following order form,
There are also brokers that display lot unit volume as above but directly in unit form. For example, the smallest lot number on a micro lot is equivalent to 1000 currency units (written in 1K) then you can trade currency pairs with 1K multiples such as 1K, 2K, 3K, or 100K.
If we can see there is a difference in the delivery of the order form in each trading platform so it is recommended that you first learn the trading platform that you will use so that there are no mistakes that are fatal during the trading execution.