Have you ever wondered what the term 'lot size' means in forex trading? It's a fundamental concept that defines the size of your trades. In forex trading, lot size refers to the number of currency units you buy or sell in a single trade. A lot size of 0.01 in forex refers to a micro lot, which is a small trading position size.
See also: Difference Between Leverage And Lot Size In Trading?
It's 1/100th of a standard lot, representing a trading volume of 1,000 units of the base currency. So, this allows traders with limited capital to participate in the forex market while controlling their risk exposure. Keep in mind that the profit or loss of a trade is proportional to the lot size you choose.
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