In Forex, a “lot” is like a unit of measurement to quantify the size of your trade. There are three main types of lots:

  • Standard Lot: Represents 100,000 units of the base currency.
  • Mini Lot: Equivalent to 10,000 units of the base currency.
  • Micro Lot: Corresponds to 1,000 units of the base currency.

The lot size you choose influences the risk and potential profits. The larger the lot, the higher the risk and profit potential. Beginners often start with smaller lots to manage risk.