A standard lot is 100,000 units of the base currency and is the largest commonly used fixed size. Because one pip on a standard lot is worth approximately ten dollars of the quote currency, a fifty-pip stop-loss represents a very large money amount. Most retail accounts begin with micro or mini lots and only move toward full lots once the account balance can absorb the same stop distance at the smaller percentage risk.
Forex glossary
Standard Lot
Related term
Micro Lot
A micro lot is 1,000 units of the base currency, one hundredth of a standard lot. On a dollar-quoted pair, one pip is worth approximately ten cents, which makes…
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