"lot" in Forex trading

[josevasquez23]

Hey guys,

What is a 'lot' in Forex trading? Can someone provide an example and explain it very simply? and what are the different types of lots commonly used?

Thank you so much!

 

[thomassup]

Hey!

In Forex trading, a "lot" is a way to measure the amount of currency you're trading.

Here's a simple example:

• Standard Lot: 100,000 units (biggest)
• Mini Lot: 10,000 units
• Micro Lot: 1,000 units
• Nano Lot: 100 units (smallest)

So if you buy 1 standard lot of EUR/USD, you're buying 100,000 euros.

Hope that helps!

 

[Nicholasbrownie]

Hey!

In Forex trading, a "lot" is a way to measure the amount of currency you're trading.

Here's a simple example:

• Standard Lot: 100,000 units (biggest)
• Mini Lot: 10,000 units
• Micro Lot: 1,000 units
• Nano Lot: 100 units (smallest)

So if you buy 1 standard lot of EUR/USD, you're buying 100,000 euros.

Hope that helps!

That is one awesome answer Thomas! Thanks.

 

[PhoenixJ]

You also need to realize that each lot size consists of different amounts of units depending on the pair. For example, if you are trading EUR/USD, then one lot size equals 100,000 units, but if you are trading Gold then one lot size equals 100 units, and if you are trading Silver then one lot size equals 5000 units. But all Forex pairs have 100,000 units also known as contract size.

 

[MarkLu]

Hey guys,

What is a 'lot' in Forex trading? Can someone provide an example and explain it very simply? and what are the different types of lots commonly used?

Thank you so much!

Hey guys,

What is a 'lot' in Forex trading? Can someone provide an example and explain it very simply? and what are the different types of lots commonly used?

Thank you so much!

Hey,

Imagine you're playing a game where you trade money from one country for money from another country. In this game, you need to know how much money you are trading. We use something called a "lot" to measure this amount.
Standard lot - 100,000 units (like having a huge bag of money)
Mini lot - 10,000 units (like having a medium bag of money)
Micro lot - 1,000 units (like having a small bag of money)
Nano lot - 100 units (it's like having a small bag of money, but you don't)

Hope this help

 

[Pharaoh]

The FPA does have a glossary that covers this:

https://www.forexpeacearmy.com/community/forums/traders-glossary.100/

It includes:

https://www.forexpeacearmy.com/community/threads/lot-size.2890/

and also has entries for minilot and microlot.