A lot is a standardized unit of a currency trade.
Types of Lots:
- Standard Lot: 100,000 units of the base currency
- Mini Lot: 10,000 units
- Micro Lot: 1,000 units
- Nano Lot: 100 units
Why It Matters:
The size of your lot determines your profit or loss per pip. For example, trading a standard lot can make or lose $10 per pip.