Q. What are "lots"?

A "lot" is the smallest amount of a currency that a Broker/Market Maker will permit a currency trader to buy or sell in any single trade.  In the Forex markets a standard lot means 100,000 units of the currency in question (one unit of U.S. currency is one dollar).  A "mini-lot" is one tenth the size of a standard lot, i.e., 10,000 units of the currency.  Most Forex traders trade standard lots.  Some smaller traders trade mini-lots, provided the broker/market maker will allow it. 

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