Lot forex (forex auction).
All transactions in the currency market are to standardized volumes, the so-called lots.
Lot forex (forex auction) – a standard amount with a strictly defined amount of one transaction in the currency market. It is used to simplify the calculations and rounding of amounts of transactions for the purchase or sale of foreign currency.
A lot of forex – is 100,000 units of base currency, which is at a record is the first in the currency pair, ie, a tool by which the operation is conducted quotation.
For example, when buying euros for US dollars using the quotation EURUSD, the base currency in the currency pair, respectively, the European currency, so a lot of this operation will be equal to EUR 100 000.
On this basis, the cost per lot in Forex is constantly changing, and the size in units is still the same. Therefore, for the transaction of the same size, but in different currencies may require a completely different amount of money.
For example, buying 1 lot GBPUSD – British pound sterling for US dollars you pay 150,000 US dollars, at the same time if the transaction is the same volume will be held on NZDUSD currency pair, then its execution will be enough and 83 000 US dollars.
That is, the specific amount of the transaction depends on what currency base stands in the used tools of the trade.
Trading is not always carried out only with integer values are sometimes brokers to their clients trade using fractional embodiments 0.1 or 0.01 of the entire FX lots. This approach allows us to trade with non-significant amounts, without abusing thus leverage.
But even if this option is still not satisfied with the trader, he has to move to trade micro lots, which are used for cent accounts.
When trading on cent account trader deposit translates into cents, that is, the amount of available funds is multiplied by 100. For example, it was $ 5 for cent accounts will be 500 units.
Lot forex while undergoing a reverse change, the transaction amount is divided by the same 100 and reduced to a hundred times.
So now there is a lot of micro forex is already equal to only 1 000 dollars, but in the terminal of the trader on the tab “Scope” will not change anything.
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