Essential

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

Start with micro lots when learning

Calculate lot size based on risk percentage

Different instruments may have different lot sizes

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