What is Lot Size in Forex
What is a Lot in Forex?
A lot is a standardized unit of trade size. The standard lot equals 100,000 units of the base currency. However, most retail traders, especially in Bangladesh, use smaller lot sizes to keep risk manageable.
Types of Lot Sizes
- Standard Lot: 100,000 units — not recommended for beginners with small accounts.
- Mini Lot: 10,000 units — suitable for accounts with 50,000 BDT or more.
- Micro Lot: 1,000 units — ideal for traders starting with 5,000–10,000 BDT via bKash.
- Nano Lot: 100 units — offered by some brokers for ultra-low risk.
Lot Size and Pip Value in BDT
For a standard lot, one pip in EUR/USD is worth $10 (about 1,100 BDT). For a micro lot, one pip is worth $0.10 (about 11 BDT). This makes micro lots perfect for Bangladesh traders who want to control risk with small deposits.
How Lot Size Affects Margin
Margin is the amount required to open a trade. With 1:500 leverage, a micro lot of EUR/USD requires about $2 margin (220 BDT). A mini lot requires $20 (2,200 BDT). Always use a margin calculator before trading.