Lot
Updated 2026-09-20
Definition
The unit of position size: a standard lot equals 100,000 units of the base currency.
Why it matters
There are also mini lots (0.10 = 10,000 units) and micro lots (0.01 = 1,000 units). Size should be chosen from risk and stop distance, not from instinct.
Practical example
With 0.20 lots on EUR/USD (dollar account) each pip is worth about $2. A 25-pip stop means risking about $50.
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Educational content, not financial advice. Trading involves risk.