Markets & Assets
Lot Size
Definition
The standardized unit of measurement for a trade — 1 standard lot in forex equals 100,000 units of the base currency.
How It Works
Lot sizes define how large each trade is. In forex: 1 standard lot = 100,000 units, 1 mini lot = 10,000 units, 1 micro lot = 1,000 units.
A standard lot on EUR/USD moves approximately $10 per pip. In futures, contracts have fixed sizes (1 ES contract controls ~$250 x index value).
Prop firms often impose maximum lot size limits based on account size to control risk. Understanding lot sizes is crucial for position sizing — trading too many lots relative to your account can quickly breach drawdown limits.
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