Trading lot

Trading lot (exchange lot, exchange lot, transaction volume) - the standard unit for measuring a contract on the market, which has a fixed size.

At Forex with the size trading lot the volume of currency that is traded under this contract is estimated. In the foreign exchange market it is about transaction amount to buy or sell. At the conclusion of a transaction on Forex trader selects a position size that is a multiple of the standard trading lotThe amount of currency involved in the turnover is determined in this way. Depending on the selected lot the risks and the amount of potential profit change. The standard lot is equal to 100,000 units of currency. Knowing this, you can calculate the profit from one pip.

Exchange lot is a unit of transactions, a batch of goods or a certain quantity of an asset of one sort. The number of assets included in one trading lot is determined by the rules of the relevant exchange. Herewith lot on the exchange can be full (Round Lot) and represent a package of 10, 50, 100, etc. amount of securities, or incomplete (Non-standard Lot, Odd lot, Broken lot) - part of the full lot.