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What is a Lot - Definition | Forex Dictionary

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Full Trader
(@fulltrader)
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A lot is the standard unit to measure the size of a trade in Forex. One standard lot equals 100,000 units of the base currency. There are also the mini lot (10,000 units), the micro lot (1,000) and the nano lot (100).

Why it matters: the lot size determines how much each pip is worth and therefore how much you risk. Adjusting the lot to your capital is the foundation of good risk management.



   
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