0.01 is a lot size in forex trading. There are three major types of position sizing in forex—Standard, micro, mini, lot size. And 0.01 is a micro lot. If you place a trade in 0.01 lot size, you will be able to make 1 $ profit only market move ten pips. On the other hand, if the market goes against you 10 pips, you will lose 1$.
Standard lot size = 1.00
Mini lot size = 0.10
Micro lot size = 0.01
If you place a trade from 0.01 to 0.09, remember to trade under micro-lots. And if you trade from 0.10 to 0.99, remember that you have to trade under mini lots. Last but not least, if your trade size is equal to 1.00 or above it, you have to trade under standard lots.
0.01 or micro-lot equal to 1,000 units of the base currency in a forex pair. For example, if you plan to place a trade on EUR/USD. You open buy position on 0.01 lots. That means you are buying 1,000 units Euro against the US dollar.
0.01 lot size in dollars
In the currency market, a lot is a contract size, meaning 1,000 units of the base currency. If you wish to know how much dollar is needed to trade 0.01 lot size, the answer will be $1.
If you buy 0.01 lot of GBP/USD with 1:1000 leverage, you will need 1$ dollar as a margin to trade.
0.02 lot size in dollars
If you wish to know how much dollar is needed to trade 0.02 lot size, the answer will be $2.
If you buy 0.02 lot of GBP/USD with 1:1000 leverage, you will need 2$ dollars as a margin to trade.
0.1 lot size in dollars
It means 10,000 units of the base currency. If you wish to know how much dollar is needed to trade 0.1 lot size, the answer will be 10 dollars.
If you buy 0.1 lot of GBP/USD with 1:1000 leverage, you will need 10$ dollars as a margin to trade.
0.50 lot size in dollars
If you wish to know how much a dollar is needed to trade 0.50 lot size, the answer will be $50.
If you buy 0.50 lot of GBP/USD with 1:1000 leverage, you will need 10$ dollar as a margin to trade.
Lot size calculator
In forex trading, the lot size calculator is a trader’s most important tool. It allows forex traders to calculate the exact position size for any trade. you don’t need to manually calculate your risk. Instead, pick any lot size calculator and calculate the position size.
Best lot size for $1000
Suppose you deposit 1000 US dollars and your leverage is 30:1, then you should trade 0.15 lot size, and this position size is the best one for $1000. That means you lost or gained $1.5 per pips movement.
Conclusion
In this content, I described some technical terms of lot calculation, such as 0.01 lot size in dollars,0.50 lot size in dollars,0.1 lot size in dollars. If you find it difficult to understand them, read and reread the whole article hope all of your confusion will be gone regarding 0.01 lot size.
