Lot Size
A lot is a standardised amount of currency traded in the Forex markets.
Quick Reference:
Standard: 100,000 Units. Micro: 1,000 Units. Risk Management tool.
Expanded Explanation:
Lot size determines how much of a currency you are buying or selling in a trade. Each lot type changes the value of a pip movement and, therefor, your potential profit or loss. For example in a standard lot, one pip movement equals roughly $10, while in a micro lot it equals about $0.10. Beginners typically start with smaller lot sizes to reduce their risk whilst learning the mechanics of trade sizing and exposure.