When you open a currency trade you must select a lot size.

Standard lot - 1; one pip equals $10

Mini lot: - .1; one pip equals $1

Micro lot: - .01; one pip equals $.10

Depending on leverage, many forex brokers will let you trade standard lots with as little as $300 in your account. You should never trade standard lots (or any lots) with the minimum amount. If you do place a trade with only $300 in your account it is the only trade you will be able to place. This can be devastating if the trade turns against you as your options for protecting yourself are limited. You will not be able to hedge because you will not have enough money in your account to place an additional trade of one standard lot. Your only option is to ride out the trade or take a loss. All it takes is for the currency pair to move 30 pips to signal a margin call that wipes out the account. The losses you suffer trading one lot on a $300 account will be the same dollar amount as the loss you would incur trading one lot in a $100,000 account. To put this into perspective if the total loss was 15 pips ($150) you would lose 50% of your $300 account but a loss of 15 pips would only be .15% of your $100,000 account.

For aggressive traders we recommend the following minimum balances:

Standard lots: $10,000

Mini lots: $1,000

Micro lots: $100

For conservative traders we recommend the following minimum balances:

Standard lots: $100,000

Mini lots: $10,000

Micro lots: $1,000



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