What is a lot in forex?

Solution
A lot in forex is the standard unit that traders use to measure the size of your trade. A standard lot is, in simple terms, 100,000 units of the base currency, which is the currency to the left in any pair. For example, 1 standard lot of USDJPY (here the USD is the base currency) equals 100,000 USD bought against the Japanese yen. The word standard contract is also sometimes used to refer to a standard lot.

Traders usually do not need to pay 100,000 USD to enter a 1 lot position. Instead, they rely on leverage from the broker and need to deposit only a portion of that amount. The higher the leverage, the smaller the amount they need to deposit.

Traders who have large accounts can trade standard lots, whereas traders with small...

Eryk Martin

Recruit
Messages
83
Lot means the volume of the instrument you are trading. It means how many units are there in a standard lot size, for example, 1 standard lot of currencies includes 100,000 units. A mini lot has 10,000 units whereas a Micro lot contains 1000 units.
 

Akwin

Private, 1st Class
Messages
50
the lot is the volume you are placing the trade in. for currencies generally 1 lot is 100000 units.
There are 3 types of lots - Standard lot is of 1,00,000 units, micro lot is of 1,000 units and mini lots is of 10,000 units. Traders need to understand the lot size of currency pairs in detail before placing a trade. There are different lot sizes for Forex, indices and commodities.
Depending on what, I could have my trade size classified as either 1 standard FX lot size or 10 mini-sized lots?
 

Dora_WalletInvestor

Private, 1st Class
Messages
71
Depending on what, I could have my trade size classified as either 1 standard FX lot size or 10 mini-sized lots?
It doesn't really matter which in this case. It's simpler to say 1 standard lot than 10 mini lots - mini lots exist so that you can trade with smaller amounts. At the same time not all platforms offer all lot sizes.
 

FriendlyFX

Private
Messages
21
There are 3 types of lots - Standard lot is of 1,00,000 units, micro lot is of 1,000 units and mini lots is of 10,000 units. Traders need to understand the lot size of currency pairs in detail before placing a trade. There are different lot sizes for Forex, indices and commodities.
Good explanation I always find it hard to explain these without going around in circles
 
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