What is a Lot in Forex?

in forex •  3 years ago 

Forex is often transacted in lots, which are effectively the number of currency units you will buy or sell.

A “lot” is a unit of measurement for the quantity of a transaction.

When you make orders on your trading platform, they are put in lots of a certain size.

It's similar to an egg carton (or egg box in British English). When you go shopping for eggs, you normally buy a carton (or box). One carton contains 12 eggs.

The typical lot size is 100,000 units of cash, but there are now mini, micro, and nano lot sizes of 10,000, 1,000, and 100 units.

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