Basics
Lot Size
A standardized unit measuring trade size in forex.
Full Definition
A lot is a standardized unit of measurement used to specify trade size in forex and CFD trading. Understanding lot sizes is crucial for proper position sizing and risk management. Standard lot = 100,000 units of base currency. Mini lot = 10,000 units. Micro lot = 1,000 units. Nano lot = 100 units. The lot size directly affects your profit/loss per pip movement.
Example
Trading 1 standard lot of EUR/USD means you're trading 100,000 euros. If the price moves 10 pips in your favor, you profit approximately $100 (10 pips × $10 per pip).
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