I had heard that newbies with 1k are advised to trade using micro lot.
What exactly is micro lot?
And what leverage are encouraged for newbie with 1k?
A micro lot usually is the smallest position size that you can trade with. New traders often dont have big capital or enough experience, therefore trading micro lots is a good way to keep the overall exposure of their trading account small.
A standard lot = 100,000 units of base currency
A micro lot = 1,000 units of base currency
About leverage i would say 1:200.
Anyway i think you need to spend some time to babypips school, you will find it very helpfull.
Even better, I think, is to trade nano lots when youre just starting out
micro-lot is 1k , so your leverage would be 1 - 1, to be honest trading 1 micro-lot is a waste of your time. 10 to 1 leverage is probably good. so the biggest trade you should ever have is 1 mini-lot ie 10k
[QUOTE=“mrquickbuy;697233”] micro-lot is 1k , so your leverage would be 1 - 1, to be honest trading 1 micro-lot is a waste of your time. 10 to 1 leverage is probably good. so the biggest trade you should ever have is 1 mini-lot ie 10k[/QUOTE]
If he was to pick 10:1 leverage from a broker & open a 10k position then all his funds would be tied up in the opening of the position (assuming they allowed it) & he would have zero free margin & would immediately receive a margin call. You need enough funds to open the position & have enough free margin to allow the position to move. Therefore the biggest trade that he should ever have should be considerably lower than 10k.
Personally I would say, “the higher the better” in terms of leverage. However I am making a very large assumption that good money management will be incorporated & the risk per trade is tolerable in the long term so regardless of the leverage chosen, you MUST familiarise yourself with a position size calculator - it’s imperative.
Micro-Lot
DEFINITION OF 'MICRO-LOT’
The equivalent to a contract for 1,000 units of the base currency in a forex trade. The base currency is the first currency in a pair, or the currency that the investors buys or sells. Trading in micro-lots enables traders to trade in small increments.
INVESTOPEDIA EXPLAINS 'MICRO-LOT’
When an investor places an order for a micro lot, this means they have placed an order for 1,000 units of the currency being bought or sold. For example, in a USD/AUD currency pair, the U.S. dollar is the base currency.
Read more: Micro-Lot Definition | Investopedia
I think all of you might actually agree with each other more than it seems.
A distinction needs to be made here between the maximum leverage available on your account, and the effective leverage you are using which is a ratio between the size of your trading positions and the equity in your account.
Traders suggesting 10:1 leverage are referring to effective leverage. Traders talking about 200:1 leverage are usually referring to the maximum leverage available on their accounts. The higher the maximum available leverage, the lower the minimum margin requirement for trades. A maximum leverage of 200:1 equates to a margin requirement of 0.5%.
In addition to what others have already said here, you may find this earlier discussion useful: 301 Moved Permanently
He would have 400 to 1 leverage but not actually use it, so he would have plenty of margin free. so i should have said set it to 500 to 1 leverage or whatever but then only trade 10k, its all random anyway, if you get lucky you will make money. let your winneers run and cut your losses short blah blah.
You can find it in the window when opening new order. This option allow you to manage risk/profit ratio for the particular order you open.
Thanks for your answers.
Microlot for a trader is when he place an order for 1000 units of the currency that he bought or sold (in a pair USD/EUR the USD is the base currency.
That is 1% of a full lot.
Just one more question, what is nano lot?
[QUOTE=“shipeichong;697484”]Just one more question, what is nano lot?[/QUOTE]
Standard Lot = 100,000 units.
Mini Lot = 10,000 units.
Micro Lot = 1,000 units.
Nano Lot = 100 units.
While you were lurking for the past 8 years did you study at pipschool, because you ask some very basic questions 
Micro forex lot represents 1k of whatever currency your account is funded with. If your account is funded with US Dollars, a micro lot would be $1000.
A micro lot is equal to 1/10 of a mini lot of currency.
[QUOTE=“james martin;697496”]Micro forex lot represents 1k of whatever currency your account is funded with. If your account is funded with US Dollars, a micro lot would be $1000. A micro lot is equal to 1/10 of a mini lot of currency.[/QUOTE]
So your account is funded by USD but you decide to trade EUR/GBP or AUD/JPY so a micro lot would not be worth $1,000. It is 1,000 units.
The value of 1 micro lot on AUD/NZD, GBP/CAD & EUR/JPY are all completely different.