What Is Lot In Forex? How Much Is 1 Lot?


What is as much as I can in this post? , I’ll tell you about how to do lot calculation. I gave information about what leverage is as important as a lot in my previous posts, but I pointed out that the factor that sets the actual risk in forex Trading is a lot, that is, a volume factor. The meaning of the word Lot is expressed in the dictionary as “divide-share”. The concept of Lot refers to the amount of position in the Forex market. During the opening of the transaction, which is traded on platforms, it appears as “Volume” and refers to the size of the position, in other words, lot.

What Is Lot?

As the Lot increases, which can also be called the volume size in Forex trading, naturally the gain increases, but on the other hand, when the Lot increases, the main risk factor in transactions increases exponentially, it should not be forgotten. For this reason, you should be very careful when trading with a Lot. Especially if you are not very experienced in the Forex market, we recommend that you start trading using Nano Lot or micro Lot. You should choose brokerage companies that offer you these trading options.

As a general admission in the Forex market, 1 Lot refers to the size of a position of 100,000 units. But it may differ according to investment instruments. For example, if you make a purchase of 1 lot at EURTRY parity, you will have made a purchase of 100,000 euros. That’s where leverage comes in. If you use 100 leverage, you can perform this transaction for 100,000 / 100 = 1000 Euros. If you use 500 leverage, you can perform this transaction for 100,000 / 500 = 200.

If you are asked what is 1 lot now, we can say that it is 100,000 units for parity. Some investors think of questions such as how many dollars 1 lot, how many Euros 1 lot and how many TL 1 lot. First, we can express 1 lot in euros in Euro-based transactions. For example, in a EURTRY transaction, 1 lot is equivalent to 100,000 euros, and if you use 200 leverage, you can open a transaction worth 1 lot for a guarantee of 500 euros.

Considering that there are also small investors in the Forex market, 3 types of Lot types have also been revealed to allow you to invest in smaller amounts instead of 1 Lot trading volume. When we want to examine them;

Mini Lot: refers to 0.1 lot, which is equivalent to 10,000 units as a unit. If we trade in Euro/dollar parity;

1 Mini Lot trading volume: 0.1 x 100,000 x 1.10 = $ 11,000 trading volume.

Micro Lot: refers to 0.01 lot, which is equivalent to 1,000 units as a unit. If we trade in Euro/dollar parity;

1 Micro Lot trading volume: 0.01 X 100,000 x 1.10 =1.100 dollars trading volume.

Nano Lot: refers to 0.001 lots, which is equivalent to 100 units as a unit. If we trade in Euro/dollar parity;

1 Nano Lot trading volume: 0.001 X 100,000 x 1.10 =110 dollars trading volume.

Depending on the amount of Lot you choose in the Forex market, the positive or negative pip size that will be obtained as a result of the transaction will also correspond to different values. What Is Pip? you can read the article I wrote about him.

For example, when trading with euro/dollar parity; 1 pip=0.1 dollar if trading with Micro Lot, 1 pip=1 dollar when trading with Mini Lot, 1 pip=10 dollar when trading with Standard Lot. This is how you can analyze the risk taken.

Lot Calculation
Again, let’s trade in Euro/dollar parity. At the moment, the parity value is about 1.10. When we want to buy 1 Lot, our collateral amount will be 100,000 x 1.10 =110,000 dollars. This means the size of trading in the Forex market as the calculated amount is leveraged. The leverage ratio provided to you by the brokerage firm with which you are contracted will also be divided by this value, revealing how much savings you can actually make this transaction. When we evaluate that the leverage ratio is 1/100, the money you need to have to make this transaction is 110,000/100 =1100 dollars.

How Much Is 1 Lot For Commodities?
What Is Commodities? you can read my article on this topic. For commodities, this is different when the size of a position at exchange rates is expressed by 100,000 units. In Forex, 1 Lot of gold means 100 ounces of gold,while 1 Lot of silver means 5000 ounces of silver.

Position size in CFD products

1 Lot = 1,000 barrel size for American crude oil,
1 Lot = 1,000 barrel size for Brent oil,
Size of 1 Lot = 100,000 cubic meters for natural gas,
1 Lot = 10,000 LBS Size for copper,
1 Lot= 100 contract size for the S & P index
1 Lot= 10 refers to the contract size for the German index.
What Is Lot Refund?
Brokerage firms in the Forex market pay certain promotional fees per Lot to support their investors in both profit and loss situations and motivate them to the market. Although there is no limit to the volume of transactions in some companies related to these campaigns, some companies are required to make a minimum of 10 lots of transactions, and some are required to make a minimum of 50 lots of transactions on a monthly basis. When the market is examined, the amount of promotion given per Lot is approximately $ 10. This amount varies from brokerage to brokerage. In addition, the amount of promotion may vary depending on the type of transaction made. For example, $ 7 in foreign exchange transactions, $ 5 in gold transactions, and $ 3 in CFD transactions can be charged for promotion. Thus, investors are encouraged to trade with the Lot. There are many companies in the Forex market that make their name with bonus campaigns that they provide to their investors. You must find the best forex company in the market.

Like it? Share with your friends!



Your email address will not be published. Required fields are marked *

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Voting to make decisions or determine opinions
Formatted Text with Embeds and Visuals
The Classic Internet Listicles
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Upload your own images to make custom memes
Youtube, Vimeo or Vine Embeds
Soundcloud or Mixcloud Embeds
Photo or GIF
GIF format