Lot Definition. What is A Lot within Forex? Usually stated as a Contract Lot, it is a trading unit of currency. A standard lot in the “USD” forex market is $100,000, a mini lot is $10,000, and a micro lot is $1,000. Forex trading ten years ago was strictly the province of major global banks and financial institutions since prevailing lot sizes were $1 million and average transaction sizes were for $5 million. However, creative brokers developed aggregation networks that permitted the offering of smaller lot sizes, and together with leverage and Internet access, retail forex trading was born. Increased sophistication in trading and data management software contributed to the popularity and dramatic growth of retail forex trading on a global basis over the last five years. Convenience and flexibility are now the hallmarks of the industry.
Forextraders' Broker of the Month
ForexTime (FXTM) is an award-winning platform that certainly has the feeling of being set up by people who know what they are doing. The firm demonstrates an understanding of what helps traders make better returns, and its success can be measured by the fact that it's doubled the number of clients it supports in recent years. The fact that the broker has grown to have more than two million accounts suggests it is getting things right for clients.