Lot
Definition
A lot is the standard unit used to measure trade size in forex and CFD trading. In forex, 1 standard lot is typically 100,000 units of the base currency (for example, 1.00 lot of EUR/USD equals 100,000 EUR). Lots standardize position sizing so traders can calculate pip value, profit/loss, and margin consistently.
Example
If you buy 1.00 lot of EUR/USD and price moves 10 pips in your favor, the profit is typically about $100 (often ~$10 per pip per standard lot for many USD-quoted pairs). Smaller sizes are common: Mini lot (0.10 = 10,000 units) and Micro lot (0.01 = 1,000 units).
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