Lot is an important term that represents the size of your transactions in Forex. In another interpretation, in the world of Finance, lot size refers to a measure of the amount or increase of a particular asset or product deemed suitable for trading. Different types of products are widely available in different lot sizes.
When you place orders on your trading platform, orders are placed in lots in the sizes indicated.
Some brokers show the amount in “lots”, while other brokers show the real currency.
As you know, the change in the value of one currency relative to another is measured in “pips”, which is a very, very small percentage of the value of one currency.
To take advantage of this small change in value, you would need to trade large amounts of a particular currency to see a significant profit or loss.
Let's say we're going to use a (standard) lot size of 100,000 units. We will now recalculate some examples to see how it affects the pip value.
As the market moves, the pip value will change depending on the currency you are currently trading.
