Gold, forex and crypto
Lot (forex)
Definition
A lot is the unit of trade size in forex: a standard lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000. On pairs where the US dollar is the quote currency, such as EUR/USD, one pip is worth $10 on a standard lot and $0.10 on a micro lot.
Example
Say you buy 0.3 standard lots of EUR/USD, which is 30,000 euros, the same as three mini lots. Each pip is then worth $3, so a 20-pip move against you costs $60. The same 20 pips would cost $200 on one standard lot and $2 on one micro lot.
Hypothetical numbers, for illustration only.
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