In the past, spo forex was only traded in specific amounts called lots, or basically the number of currency units you will buy or sell.
The standard size for a lot is 100000 units of currency and now there are also mini, micro and nano lots size that are 10000, 1000 and 100 units.
- When you buy a currency you will use the offer or ask price, when you sell you will use the bid price.
You are probably wondering how a small investor like yourself can trade such large amounts of money.Think of your broker as a bank who basically fronts you $100000 to buy currencies. The amount of leverage you use will depend on your broker and what you feel confortable with. typically the broker will require a depositalso known as margin.
LOT AND Number of units
Standard (100000 units)
mini (10000 units)
micro (1000 units)
nano (100 units)
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