"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!

 

[Rufus_Leakey]

"A lot" is a generic term for the amount you will likely lose trading forex.

The answer seems easy to look up.

What Is Standard Lot? Definition in Forex and Calculating Lots

A standard lot is equal to 100,000 units of the base currency in a forex trade. It is one of the four lot sizes. The other three are mini-lot, micro-lot, and nano-lot.

www.investopedia.com

 

[Zerologic]

The term Lot refers to the number of currency units that a trader will buy or sell. In other words, a Lot is a unit that measures the number of forex trading transactions carried out by a trader. The standard size for 1 Lot is 100,000 currency units. For mini size, one lot is 10,000 units, and one micro lot is 1000.

The size of 1 standard lot is roughly worth $10 of every pip the price changes. The size of 1 mini lot is worth approximately $1 of every pip the price changes. A 1 micro lot size is worth approximately $0.1 for every pip the price changes

 

[Zerologic]

When trading on FXOpen, I most often use the smallest standard lot size of 0.01 lots, this is a lower risk even though the gain is also low, but using the lowest position size will provide more trading opportunities if accompanied by a risk-reward ratio of at least 1:1.