Lot
A standardized trading unit. In forex, a standard lot is 100,000 units of the base currency.
Definition
A lot is a standardized unit of measurement for a trading position. In forex, a standard lot equals 100,000 units of the base currency. Lots help standardize trading and calculate position sizes consistently.
Types of Lot
Standard Lot
100,000 units - 1 pip ≈ $10
Mini Lot
10,000 units - 1 pip ≈ $1
Micro Lot
1,000 units - 1 pip ≈ $0.10
Nano Lot
100 units - 1 pip ≈ $0.01
Trading Tips
1
Start with micro lots when learning
2
Calculate lot size based on risk percentage
3
Different instruments may have different lot sizes
Related Terms
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