Mini Lot
A mini lot is a trading term used to describe a trading contract that is worth one-tenth of a standard lot. A standard lot is the equivalent of 100,000 units of the base currency in a forex trade. A mini lot is 10,000 units of the base currency and is the smallest position size that you can trade with most brokers. Mini lots are a great way to trade smaller amounts of a currency pair with a smaller capital outlay. This is especially useful for traders who are just starting out and don’t have a lot of capital to invest.
History of Mini Lots
Mini lots were introduced in the early 2000s as a way to make forex trading more accessible to smaller traders. Before mini lots, traders had to trade in standard lots, which required a much larger capital outlay. Mini lots allowed traders to trade smaller amounts of currency with a smaller capital outlay, making it easier for smaller traders to get involved in the forex market.
Comparison of Lot Sizes
| Lot Size | Units |
|---|---|
| Standard Lot | 100,000 |
| Mini Lot | 10,000 |
| Micro Lot | 1,000 |
Summary
Mini lots are a great way to trade smaller amounts of a currency pair with a smaller capital outlay. Mini lots were introduced in the early 2000s as a way to make forex trading more accessible to smaller traders. For more information about mini lots, you can visit websites such as Investopedia, Forex.com, and DailyFX.
See Also
- Standard Lot
- Micro Lot
- Forex Trading
- Currency Pair
- Base Currency
- Margin
- Leverage
- Pip
- Spread
- Lot Size
