Micro-Lot

AAA

DEFINITION of 'Micro-Lot'

The equivalent to a contract for 1,000 units of the base currency in a forex trade. The base currency is the first currency in a pair, or the currency that the investors buys or sells. Trading in micro-lots enables traders to trade in small increments.

INVESTOPEDIA EXPLAINS 'Micro-Lot'

When an investor places an order for a micro lot, this means they have placed an order for 1,000 units of the currency being bought or sold. For example, in a USD/AUD currency pair, the U.S. dollar is the base currency.





Investors use micro-lot sizes when they prefer not to trade mini or standard lots. Ten mini lots is equal to 100 micro lots, which is equal to one standard lot.



RELATED TERMS
  1. Micro Account

    A forex trade made up of contracts for 1,000 units of currency. ...
  2. Forex Mini Account

    A type of brokerage account that is used by beginner traders ...
  3. Authorized Forex Dealer

    Any type of financial institution that has received authorization ...
  4. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
  5. Forex - FX

    The market in which currencies are traded. The forex market is ...
  6. Forex Account

    The type of account a forex trader opens with a retail forex ...
Related Articles
  1. Trading Strategies

    MACD Histogram Helps Determine Trend Changes

    Learn how this momentum indicator is used to determine price action on a stock.
  2. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  3. Forex Education

    Using Double Tops And Double Bottoms In Currency Trading

    Find out how to apply the two most common price reversal patterns to your trading.
  4. Forex Education

    Using Elliott Wave To Trade Forex Markets

    Learn how to set up a trading plan using this method, to profit as a forex trader.
  5. Forex Education

    Forex: Should You Be Trading Trend Or Range?

    In FX, it's not the price environment that decides this for you. Learn the differences to see which you prefer.
  6. Forex Strategies

    How do I create a Forex Range-Bound trading strategy?

    Discover how to create a range-bound trading strategy with forex currency pairs, and learn which kinds of pairs are most conducive to ranges.
  7. Forex

    Navigating The Labyrinthine US Regulations For Forex Brokers

    Forex is, understandably, tightly regulated. We offer a peek into forex regulations in the US and other countries.
  8. Forex

    Top US-Regulated Forex Brokers

    Who are the top regulated forex brokers in the USA to trade currencies? Here is a quick list.
  9. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  10. Chart Advisor

    Trade A Surging U.S. Dollar With These 3 ETFs

    With ETFs it's now possible for the average trader to gain exposure to lucrative currency movements. Here are a few options to consider.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center