Lot

A lot is the size of your forex position. There are three common lot sizes: standard (100,000 units), mini (10,000 units), and micro (1,000 units). On EUR/USD, one standard lot means you're controlling 100,000 euros. Lot size determines the dollar value of every pip move. On a standard lot of EUR/USD, one pip is worth about $10. On a mini lot, about $1. On a micro lot, about $0.10. The smaller the lot, the smaller the P&L swings — and the smaller the emotional rollercoaster. Beginners should start on micro lots. The whole point of risking tiny amounts isn't to make tiny profits — it's to prove to yourself you can follow your rules without the dollar numbers hijacking your brain.