How do I choose a lot size in forex? Now that you understand what is a lot size and the types available, it is essential to know how to select the best lot size for your trade. Note that a lot size will affect your profit and losses because of the pip movements. Therefore, it is wise to look at the risk before choosing a lot size.
Remember, the more the lot size, the higher the risk because of pip movement. For example, If you start trading with a standard lot account, it means that for every pip movement, you will either lose or gain $10. If you are not good at trading, you do not want to choose this account because you will blow your account in a matter of seconds.
Another thing to look at is money. If you do not have enough money to open a standard or a mini lot account, go for a micro one. Otherwise, you will lose all your money if the market moves against your trade.
So, what lot size is good for $100 forex? Depending on your skill level, you can choose a mini or a micro lot account. However, Audacity Capital recommends using a risk-management calculator to find the best lot size based on your money.