What is a Micro Lot in Forex
What Exactly is a Micro Lot?
A micro lot is the smallest standard lot size offered by most forex brokers. One micro lot equals 1,000 units of the base currency. If you are trading EUR/USD, one micro lot controls 1,000 euros. For a Thailand trader depositing in THB, this means your position size is manageable and your risk per trade is small.
How Does a Micro Lot Work in Practice?
When you open a trade of 1 micro lot, each pip movement is worth approximately $0.10 USD. At an exchange rate of 35 THB/USD, that is about 3.50 THB per pip. This allows you to trade with a small account—say 5,000 THB—and still control your risk effectively. For example, if you set a stop loss of 20 pips, your maximum loss is only 70 THB per trade.
Why Thailand Traders Use Micro Lots
Thailand traders often start with small capital due to lower average incomes compared to Western countries. Micro lots enable you to participate in the forex market with as little as 500 THB deposited via PromptPay. Experienced traders also use micro lots to fine-tune their strategies, test new pairs, or scale into positions gradually without overexposing their account.
Micro Lot vs Mini Lot vs Standard Lot
One standard lot = 100,000 units (approx. 3,500,000 THB). One mini lot = 10,000 units (approx. 350,000 THB). One micro lot = 1,000 units (approx. 35,000 THB). The smaller the lot size, the lower the margin requirement and the smaller the pip value. For Thailand traders, micro lots are the most accessible way to start trading without risking large sums of money.