Finding The Perfect Lot Size For You In Forex Trading

A lot in Forex refers to the size of the trade you can place. This is directly proportional to the capital you have invested and it has a huge impact on the risk you make. It is essential that you find the best lot size for yourself because working with an account that has a risk threshold beyond your accommodation will not work out well in the long run while Forex trading in Indonesia. 

Some traders like trading with a small lot which has a negligible amount of risk; whereas others choose to be a little more adventurous and start off with a big account. Though it does ultimately come down to preference, double-thinking before picking is the best move. 

Forex Trading Strategies

Micro Lots:

These lots are the starting point and the minimal account size. Micro lots are made up of 1000 units of the currency you wish to work with. If you choose to trade in US dollars, a micro lot would carry $1000. When starting off, these are the best accounts. Since beginners aren't in a position to take too many risks and incur heavy losses, micro lots serve perfectly due to their minimal size, which adds up to minimal risks!

Mini Lots: 

A stable point between micro and standard, the mini trading lot has a value of $10,000 with each pip having a value of $1. It isn't really advisable for beginners to start at this point, because to trade mini lots you will have to come with ample capital in your trading account, and are essentially putting all of it at risk. Professionals suggest starting off with micro lots and a few thousand dollars because they don't have as much a capital requirement as their standard counterparts or the risks of the same. 

Standard Lots: 

These lots are 100k unit’s worth. Meaning a pip is valued at $100, and the complete account size is at $100,000. Sounds fancy, but is incredibly risky. Trading with standard lots in it requires you to have a minimum of $25,000, and this isn't an option most traders take, as the majority works with micro and mini lots. 

Thinking of starting Forex Trading In Indonesia? Sign up with WesternFX now, and get yourself the best account! Be it micro, mini or standard, our professionals will counsel you and guide you through the selection process, to make sure you are working with an account you are comfortable with and can make winning trades on. 

Assisted by our experts, you will learn to draft Forex Trading Strategies and see profits in no time! Call us today and get started!