Definition of Lot
The standardized unit of trade size in forex. A standard lot equals 100,000 units of the base currency; a mini lot is 10,000; a micro lot is 1,000; and a nano lot is 100.
At a glance
Term
Lot
URL slug
lot
Category
Size & pip math
Short answer
The standardized unit of trade size in forex.
Deep dives
/guide/what-is-lot/, /tools/lot-calculator/, /blog/forex-risk-management-guide/
Example
Example: if EUR/USD moves 20 pips and each pip is worth $2 at your size, a 20-pip move is about $40. Always connect “Lot” to a cash number before you click.
Common mistake
Common mistake: treating “Lot” as theory without converting it into cash loss at the stop.
Professional tip
Tip: compute “Lot” with ForexTradeLab’s lot or pip calculator before any live order, and screenshot the first ten calculations.
Related deep dives
Practice tools:
Related terms
FAQ
The standardized unit of trade size in forex.
Position-size math tied to “Lot” decides how much cash you gain or lose per move. Without it, risk management is guessing.
Common mistake: treating “Lot” as theory without converting it into cash loss at the stop.