Lot size is the most important thing when we are working with trades. Trading style is taken an important role to do better performance in trading.
The basic thing is smaller is the better. If you choose smaller lot size you can manage your trades and you will free very flexible .
Using Micro Lots
Micro Lots are the smallest and best lots available for traders. Now a days most of the brokers are using micro Lots. A micro lot is measured by 1000 units of currency in your account. If your account is related to US dollars this micro lot is nothing but $1000 worth of the base currency which you want to trade. If you choose dollar based pair, 1 pip is nothing but equal to 10 cents. This is very useful for beginners who wants to do easy trading.
Using Mini Lots
Mini Lots are also the best lots when compare with Micro Lots. Mini Lots are measured by 10,000 of your currency. If you are trading a dollar based pair, and a dollar based account, each pip in a trade is worth of $1. The beginner traders who wants to start trading by using mini lots, they were be well capitalized. $1 per pip is seems like a small amount in trading. But in Forex trading, it can move 100 pips per a day, and even in an hour. If the market is goes down, that value is $100 loss. You must take some risk to do trading. The risk is depends on your decision. If you work with mini account, you must start with at least $2000 which is more comfortable for you to earn more income.
Using Standard Lots
One more Lot size is Standard Lots. It is a 100k unit. This is measured by $100,000 when trading with dollars. The Standard lots pip size is $10 per pip. If you loss $100 means you loss only 10 pips. The most of Standard Lots are for institutional sized accounts. You can make Standard Lots by using $25,000 or more trades.
Todays most of the Forex traders are doing trading by using mini lots or micro lots. The account size will keeps you for doing trading for long period.