A lot is the standardised unit of trade size in forex. One standard lot is 100,000 units of the base currency, a minor lot (also called a mini lot) is 10,000 and a micro lot is 1,000. On a pair quoted in dollars, one pip on a standard lot is worth roughly ten dollars, on a mini lot roughly one dollar and on a micro lot roughly ten cents. Lot size, not the number of pips you target, is what mainly controls how much each trade risks.
Forex glossary
Lot
Related term
Position Size
Position size is how much of a pair you buy or sell, expressed in lots. The usual method works backwards from the risk: decide how much money you are prepared t…
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