Basics

Lot

A lot is the unit used to set the size of a trade. In forex, 1 standard lot is 100,000 units of the base currency; smaller sizes are written as decimals, such as 0.1 or 0.01 lots.

Also called: lot size, volume, trade size, position size

Hypothetical example

Hypothetically, a trade of 0.5 lots on EUR/USD is 50,000 euros. A 10-pip move is then worth $50, a gain or a loss depending on the direction.

Standard lot
Mini lot
Micro lot
Pip

Used in these guides

Basics8 min read
Pips, lots and spreads explained
How price moves are measured, how trade size turns pips into money, and what the spread costs you on every trade.
Costs & risk8 min read
Position sizing: how to work out how many lots to trade
A step-by-step method for setting the size of a trade from the amount you are prepared to lose, your stop loss and pip value.
Basics8 min read
What is forex and how does it work?
How the global currency market works, how a forex trade is priced, and the risks that come with trading it.

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Risk Warning: CFDs are complex instruments and come with a high risk of losing money.

Lot

Hypothetical example

Related terms

Used in these guides

Pips, lots and spreads explained

Position sizing: how to work out how many lots to trade

What is forex and how does it work?