Lot

Lot - A standardized quantity of currency units in a trade. Because currencies trade in large amounts, the lot size normalizes position size. A standard lot is 100,000 units of the base currency, a mini lot is 10,000, a micro lot is 1,000, and a nano lot is 100. For example, buying 1 standard lot of EUR/USD = buying 100,000 EUR. The lot size determines pip value. A source explains: “A lot in forex trading is a unit of measurement that standardizes trade size… A standard lot in forex is equal to 100,000 currency units”.