Curious about the term “0.1 lots” in forex? Let’s break it down!
- What is a Lot? A lot is the standard unit of measurement in forex.
- Standard Lot: 100,000 units
- Mini Lot (0.1 lots): 10,000 units
- Micro Lot (0.01 lots): 1,000 units
- Value of 0.1 Lots: If you’re trading 0.1 lots, you’re trading 10,000 units of the base currency.
- For EUR/USD: Trading 0.1 lots means you’re trading €10,000.
- Each pip movement is worth approximately $1 per pip for most major currency pairs.
💡 Example: If EUR/USD moves 10 pips in your favor, you’d earn about $10 when trading 0.1 lots.