Hi Guys I have a question,
Say I have $9,850 in my account. And I want to buy a currency pair (lets say the AUD/USD) for $9,850. Is that possible?
basically my issues is, can I transact for any value of money or does it HAVE to be a “standard lot” or a “mini lot” or a “micro lot” etc?
These lots confuse me.
cheeeers !
Twenty years ago, in order to trade forex you had to be sufficiently well capitalized to trade in standard lots — [B]100,000 units[/B] — or more.
To make this market accessible to the general public, brokers began to offer trading in fractional lots:
First, they offered 1/10 standard lots — [B]10,000 units[/B]— called mini-lots.
Then, some brokers offered 1/100 standard lots — [B]1,000 units[/B] — called micro-lots.
And even 1/1000 standard lots — [B]100 units[/B] — called nano-lots.
Then, a (very) few brokers (Oanda, for example) went all the way to offering trading in [B]individual units[/B] — a 1-unit minimum position size.
So, those are your choices.
Regarding your question:
A $9,850 position size is [I]possible,[/I] if you have a [B]unit-account[/B] — that is, an account such as Oanda offers in which you can trade any number of individual units of base currency.
Clearly, if you have a [B]micro account,[/B] you can trade a 9,000-unit position, or a 10,000-unit position. But, not a 9,850-unit position.
Keep in mind that you are trading [I]with[/I] (some would say, [I]against[/I]) your broker. You can only trade the “lot sizes” which your broker offers.
If your broker’s offerings do not suit you, then you’ll have to look around for a broker more to your liking.
.