What is a lot?

Currencies in the Forex market are sold in lots. Standard lot size - 100 000 units. Units indicate the base currency, which traded.Eg., A pair USD / CHF is the main currency of the U.S. dollar. So, if you want to sell or buy a standard lot, its price will be $ 100 000. Another example: the pair GBP / USD. In this case, the primary currency is the British pound and the standard lot for a pair GBP / USD will reach £ 100 000.

There are 3 types of lots (depending on size):

Standard unit = 100 000 units;

Mini Lot = 10 000 units;

Micro lot = 1 000 units.

Mini and micro lots offered to traders who offer mini deposits (average of $ 200 to $ 1000). Standard lots are selling trader deposits are much larger (requirements for deposits of different sizes depending on the online broker).

We return to the lots. Trading standard lot (100 000 units), the trader risks losing (or is going to win) $ 10 per pip. The smaller the lot size, the smaller the profits, but losses will be less. When traders talk about losses, they also use the term "risk". After trading in Forex, you get the same chances: you either win or lose.