Foreign exchange or forex is an act of buying and selling of currencies with the help of a brokerage firm or an organization. The investors or traders make profits from the changes in the exchange rates.
Forex market is the most liquid market in the whole world. It is the largest financial market as well. It is the place where currency trading activity happens. In any normal day, more than 4 trillion dollars are traded here.How to begin forex trading? At first, get some information about forex market size 2015 to start your forex journey.
The changing of currencies is not just limited to forex trading. We have to change the local currencies when we visit foreign countries. If you visit U.S., you need to change your Russian Ruble into U.S. Dollar to buy anything in that country. If an Indian visits Russia, he needs to change Indian Rupee into Russian Ruble.
Forex trading is an extremely interesting type of trading. Many people from different countries get involved in this trading activity because it provides a golden opportunity to make huge profits. But a trader needs to be very smart and cautious. A risk of losing large amounts of money is associated with the field as well.
In the world of forex what is a lot size? It’s very important for the beginners to have an idea.
Forex Market Lot Size:
Foreign exchange currencies are only traded in units which are called lots. Lot size in forex market is divided into 4 types. Go through the list which is written below.
- Nano Lot:
Nano lot is a term which means the smallest trading unit. In this case, forex one lot size means 1 currency. Low risk is associated with this lot size.
- Micro Lot:
This term is used for 1,000 units. For the most major pairs, it means $0.10 per pip. It is a very good size for those traders who don’t have enough capital for doing the trading activity. It does not provide a scope to make a lot of money. But it does not give a chance to lose huge amounts of money as well. Micros are good trade sizes for the forex traders in forex trading.
- Mini Lot:
Mini lot is a term which is used for 10,000 unit trade. On the most major pairs, it means $1 per pip. You should make sure you are properly capitalized before trading mini lots. It is a good choice for the serious traders who have good capital.
- Standard Lot:
Standard lot is a term meaning 100,000 unit trades. On the main pairs, it means $10 per pip. The traders should be prepared for large swings of profits and losses if they trade with this lot size. On a regular day, gains or losses range from $1000 to $2000 per standard lot. If you want to trade with this lot seriously, there should be $10,000 per standard lot in your account.
If you’re planning to start forex trading this year, check some details on forex market size 2015. It will help you understanding the forex market trends of last year.