Lot size, leverage and margin determine how much market exposure a forex account carries.

IMAGE PLACEHOLDERLots, Leverage and Margin
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Lot Size

Standard, mini and micro lots represent different trade sizes. Larger lots create larger gains and losses for the same price movement.

Leverage

Leverage multiplies buying power. It can improve capital efficiency, but excessive leverage is one of the fastest ways to create large drawdowns.

Margin

Margin is the capital reserved to support open positions. Monitoring free margin is important when multiple trades are open at once.