ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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100
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1, 000
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100, 000
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1
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Detailed explanation-1: -What Is a Mini Lot? A mini lot is a currency trading lot size that is one-tenth the size of a standard lot of 100, 000 units-or 10, 000 units. One pip of a currency pair based in U.S. dollars is equal to $1.00 when trading a mini lot, compared to $10.00 when trading a standard lot.
Detailed explanation-2: -A standard lot represents 100, 000 units of any currency, whereas a mini-lot represents 10, 000 and a micro-lot represents 1, 000 units of any currency.
Detailed explanation-3: -Just to put things in perspective: 100, 000 Units = 1.00 Lot. 10, 000 Units = 0.10 Lot. 1, 000 Units = 0.01 Lot.
Detailed explanation-4: -Nano LOT (also referred as 0.001 lot)-100 units of any given currency. There are four main types of lot sizes you will come across when trading in the forex market, namely: standard lot, mini lot, micro lot, and nano lot. A standard lot corresponds to 100 000 units of the base currency in a quote of currency pairs.