A lot is the standardised size of a forex position. A standard lot is 100,000 units of the base currency, a mini lot is 10,000, and a micro lot is 1,000. Lot size, combined with leverage, determines how much each pip is worth and how much you risk.
Forex Term
Lot
The unit of trade size in forex.
Example
Trading one micro lot (1,000 units) of EUR/USD means each pip is worth about $0.10.
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.