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What is a Lot?

A lot is the standard unit size of a transaction.
Depending on the financial instrument traded, the lot size is determined; e.g. a standard lot traded, for forex trading, usually consists of a contract size of 100,000 (units of the base currency).The contract size is then proportionate as per the lot indication - standard, mini or micro lot. As a result, a standard contract size of the GBPUSD is 100,000 GBP then the mini lot consists of a contract size of 10,000 GBP and the micro lot consists of 1,000 GBP accordingly.

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