Forex Trading for Beginners #5: What is a Forex Lot Size by Rayner Teo
Forex Lot - The Conclusion:
Most retail forex traders only trade in forex mini lots or forex micro lots. It might not sound very attractive, but practically, keeping your lot size small will help you to survive long term.
In our opinion, the forex mini and micro lots are the perfect balance between capital requirement and risk-taking.
Using higher lot size for forex trading, with a lower capital in the trading account may end up as a disaster.
If you are a beginner, our suggestion is to trade mostly in forex micro lot size, and probably in forex mini lot size as the confidence grows. Also, be sue to maintain adequate balance in the trading account and use proper stop loss & target.