FxPro Help Centre - Glossary

Lot (Lot)

A "Lot" in financial and trading terms refers to a standardized quantity of a financial instrument. In the stock market, it often represents a set number of shares of a stock or other security. For example, one standard lot in the stock market might consist of 100 shares.

In the context of the foreign exchange (Forex) market, a lot usually refers to a standardized amount of currency. For example, a standard lot in Forex trading typically represents 100,000 units of the base currency.

The concept of lots is important as it standardizes trading sizes, which helps in understanding and calculating profits and losses, and in comparing different trading positions or markets. Smaller lot sizes, like mini lots and micro lots, are also common, enabling traders to participate in markets without needing to commit large amounts of capital.