What is a Micro Lot in Forex
What Exactly is a Micro Lot?
A micro lot equals 1,000 units of the base currency. In a USD-denominated account, one micro lot controls $1,000 worth of currency. Each pip movement in most major pairs is worth $0.10. For example, if you buy EUR/USD at 1.1000 and it moves to 1.1010 (10 pips), your profit is $1.00.
Why Micro Lots Matter for Moldova Traders
Moldova's average monthly salary is around $500 USD, so protecting capital is crucial. Micro lots allow you to trade with tiny risk – a 50-pip loss costs only $5. This lets you practice strategies, test brokers, and build experience without wiping out your account.
How Micro Lots Compare to Other Lot Sizes
A standard lot (100,000 units) is worth $10 per pip – too large for most retail traders. A mini lot (10,000 units) is $1 per pip. A micro lot (1,000 units) is $0.10 per pip. For Moldova beginners, starting with micro lots is the safest approach.
Leverage and Margin for Micro Lots
With 1:50 leverage, a micro lot requires only $20 margin ($1,000 / 50). Many brokers offer up to 1:500 leverage, but we recommend conservative leverage. Using micro lots with 1:50 leverage keeps your risk per trade under 2% of a $100 account.