A standard lot is an amount of currency which is the same as 100,000 units of a base currency .
<h3>What are the types of lot sizes?</h3>
There are three lot sizes;
- The standard lot
- The mini lot
- The micro lot
In finance, a lot indicates a measure or increment of a commodity that can be transacted. Products are bought and sold using different lot sizes. Products such as spot forex are sold in lots of 100,000, 10,000, 1,000, or 100 units.
Competition and brokerage online has resulted in the introduction of various lot sizes and forms.
A change of $10 corresponds to a pip movement of a standard lot.
By buying $100,000 at ¥110.00 and the price increases to ¥110.50, which indicates a 50 pip movement and a gain of $500 and vice versa.
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