Micro account

A micro account is a type of trading account that enables traders to place orders in micro lots. One micro lot represents 1,000 units of the base currency in a currency pair. This contrasts with standard accounts, which typically use standard lots (100,000 units) or mini lots (10,000 units). Trading in micro lots significantly reduces the notional value of each trade.

For retail traders, micro accounts offer reduced risk exposure due to smaller position sizes. A one-pip movement on a micro lot for EUR/USD, for example, equates to a $0.10 profit or loss, compared to $10 for a standard lot. This makes micro accounts suitable for beginners learning to trade or for experienced traders testing new strategies with minimal capital commitment. It helps manage risk effectively.