What is a Forex Lot Size?

lotsize

Just so that you do not waltz into the forex market and demand to buy or sell ONLY ONE dollar or two, the industry has ‘standard sizes’ of currency that a trader can buy or sell at any one time to (a) Make trading profitable and worthwhile for all parties involved and (b) Make the calculation of profits, losses and total trades easier.

A standard forex lot, also called 1 lot, represents 100,000 units of the base currency. For example, if you are buying 1 lot of the EURUSD currency pair you are actually putting 100,000 EUROS (EUR is the base currency here) into the market.

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