lot - definition

A lot is a standardized unit of trade size in forex, representing a fixed number of base currency units. It determines the contract size for each position you open, directly affecting the dollar value per pip movement. This standard applies to all major, minor, and exotic currency pairs traded on retail platforms, though broker-specific rounding rules may apply for fractional lots.

Standard lot = 100,000 units
Mini lot    = 10,000 units
Micro lot   = 1,000 units

You trade AUD/USD with a standard lot. The current exchange rate is 0.6500. One pip movement (0.0001) on 100,000 AUD equals 10 USD. If the price moves 20 pips in your favour, your profit is 200 AUD (20 pips × 10 USD ÷ 0.6500).

• JPY pairs: For pairs where the quote currency is JPY (e.g., USD/JPY), pip value is calculated differently. One pip is 0.01, not 0.0001. A standard lot on USD/JPY at 150.00 gives 1,000 JPY per pip.
• ASIC regulation: Australian brokers under ASIC may impose maximum lot sizes for retail clients (typically 30:1 leverage cap), limiting how many standard lots you can open without margin call risk.
• Fractional lots: Most brokers allow 0.01 lot increments (10,000 units), but some exotic pairs may only trade in full lots due to liquidity constraints.

• pip
• leverage
• margin
• position size