Contract Lot – What is a Contract Lot?

What is a Contract Lot?

Definition of Contract Lot: This can be defined as a currency’s trading unit. A general lot is nearly $100,000 whereas a small lot is about $ 1,000. Ten years ago, Forex trading market was strictly considered as a province of the main banks and financial organizations as the prevailing sizes of the lot were about $ 1 million and the average size of the transaction was about $5 million. On the other hand, creative brokers created aggregation networks that allowed offering small sizes of lot and combined with power and internet access, Forex trading came into existence. Improved complexity in data management software and trading plays an important role in the popularity and growth of trading on a worldwide basis since last five years. Flexibility and convenience are nowadays regarded as trademark of this industry.