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!
This is where you need to start, Jose -
In Forex trading, a “lot” is basically how you measure the size of your trade. Here’s an easy example: if you buy 1 standard lot of EUR/USD, you’re buying 100,000 euros.
There are a few different lot sizes:
- Standard Lot: 100,000 units (biggest)
- Mini Lot: 10,000 units
- Micro Lot: 1,000 units
- Nano Lot: 100 units (smallest)
If you’re new to trading, starting with micro or nano lots is a good idea to keep things manageable.
Hope that makes sense!
This is a good question and I have a suspicion that we’re going to see different answers.
In forex trading, a “lot” refers to a standardized unit that represents a specific amount of the base currency in a currency pair. It’s like a pre-determined package deal for buying or selling currencies.
Now go over what a “yard” is in Forex.
1 lot usually means 100,000 unites of a currency pair. when you open buy with 1 lot on eurusd for example, you are spending 100,000 eur and buying the same value of usd .
Is someone able to say how lots relate to pips?
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Hey @tommor isn’t it great to be an English spreadbettor and not have to worry about the stupidity of lots? 
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I have Liked your post.
I wish I could Like it more times.
Happy days.
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One lot is ‘usually’ equal to $10 so it doesn’t really relate to pips. If you ‘bet’ one lot per pip you are betting $10 per pip. ‘Usually’ being the operative word. Even different brokers have different lot sizes for the same instruments.
I’m sure it is just ploy to make trading appear more difficult and exclusive than it really is.
The brokers are attempting to give the impression that when we go long on EUR/USD, we are buying an asset.
The plain truth is we are betting on the exchange rate. It’s understandable they like to hide this when “betting” is such a dirty word to many people.
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