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Volume - Lot, Mini Lot and Micro Lot, Lot value

Remember the Crude Oil example? We measured the trading volume in barrels, right? Well, there’s an easier way to describe it and it’s called Lot.

Lot is by default a unit of measure when it comes to trading. It has multiples and fractions such as Mini lot (a tenth of a lot) and micro-lots (a hundredth of a lot).

Back to the crude oil example;

1 lot = 100 barrels x 45 USD =4500 USD

0.10 (mini lot) = 10 barrels x 45 USD = 450 USD

0.01 (micro lot) = 1 barrelx 45 USD = 45 USD

Each of these market values the need to account for the leverage to understand the required margin to open a position as explained above.

Now some exercises for you:

1.   Calculate the value for 0.2 lot and 0.04 lot for EUR/USD in case 1 Lot = 100.000 EUR. Than calculate the required margin on a 1:400 leverage.

2.   Amazon shares cost 1800 per share. If a lot = 100 shares, 0.07 = ? Than calculate the required margin on a 1:20 leverage.