Each standard lot traded in the Forex market is a 100,000 (of the base currency) contract. In other words, when trading one lot in a standard account, a trader is essentially placing a $100,000 trade in the market. Without leverage, many investors would not be able to afford such a transaction. Leverage of 1:100 would allow a trader to place the same one lot ($100,000) trade by posting $1,000 in margin.

Many retail Forex brokers also offer the ability to trade mini lots. Mini lots essentially allow the trader to trade one tenth of a standard lot. Trading in this size is often referred to as trading a mini lot. Mini lot contracts are $10,000 (of the base currency). A trade of one mini lot would be a $10,000 trade. Trading with 1:100 leverage would mean that $100 of margin would control a $10,000 contract.

Here at HotForex we have also introduced the Micro account offering 1:1000 leverage and a minimum trade size of 1 micro lot or $1,000.

Avertissement sur les risques : la négociation des produits à effet de levier tels que le Forex et les CFD peut ne pas convenir à tous les investisseurs car ils comportent un niveau de risque élevé pour votre capital. La négociation de ces produits est risquée et vous pourriez perdre tout votre capital. Veuillez lire la totalité de Avertissement sur les risques
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