Lot

A lot measures position size. A standard lot is 100,000 units of the base currency; a mini lot is 10,000 units, a micro lot is 1,000 units, and a nano lot is 100 units.

Lot size determines how much each pip is worth. On a standard lot of most dollar-quoted pairs a pip is roughly ten dollars, while on a micro lot it is around ten cents. Beginners are wise to start with micro lots and feel a real trade before scaling.