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 - FX

    The market in which currencies are traded. The forex market is ...
  3. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
  4. Authorized Forex Dealer

    Any type of financial institution that has received authorization ...
  5. Forex Mini Account

    A type of brokerage account that is used by beginner traders ...
  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 ...

  2. Forex Education

    Top 7 Questions About Currency Trading ...

  3. Forex Education

    Using Double Tops And Double Bottoms ...

  4. Forex Education

    Using Elliott Wave To Trade Forex Markets

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center