In trading, 1 lot is a standard unit of measure that defines the size of a trading position in the forex and other financial markets.

In forex trading:

• 1 lot typically represents 100,000 units of the base currency in a currency pair. For example, if you trade 1 lot on the EUR/USD pair, it means you are buying or selling 100,000 euros against the U.S. dollar.
• 0.1 lot (also called a mini lot) represents 10,000 units of the base currency.
• 0.01 lot (also called a micro lot) represents 1,000 units of the base currency.

The lot size determines the amount of risk and potential profit for a given trade. A larger lot size means greater exposure and higher risk, so profits and losses will be proportionally larger.

Example: If you open a 1 lot position on EUR/USD, it represents a trade worth 100,000 euros. A one-pip movement (the smallest change in price) would result in a $10 change in the position’s value.

• Forex: 1 lot = $100k notional
• Index: 1 lot = 1 Contract Exceptions: SPX500: 1 lot = 10 contracts JPN225: 1 lot = 500 contracts
• Digital Currency: 1 lot = 1 coin
• Silver: 1 lot = 5000 ounces
• Gold: 1 lot = 100 ounces
• Oil: 1 lot = 100 barrels