Encyclopedia › Trading terms ›

Lot

Instead of saying 'I bought 100,000 euros', forexThe currency market. traders say 'one standard lot'. Smaller sizes are called mini lots (10,000 units) and micro lots (1,000 units).

Lot size decides how much each Pip is worth to you. Bigger lot, bigger money per pipThe smallest standard price step in forex., bigger risk. Use Position sizing to pick a size from your stop, not from your mood.

Related

• Pip
• Position sizing
• Forex (currencies)

Sources & studies

1. Investopedia (secondary): Lot

Trading termsPipPosition sizing

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.