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.