Forex Glossary

Find definitions for key Forex trading terms along with introductions to the concepts, people and entities that impact the Forex market
Lot
A standard trading term referring to an order of 100,000 unit.

Currency pairs are usually traded in units of 100,000 (standard lots),  10,000 unit (mini lots) or 1,000 (micro lots) meaning buying / selling 100,000 of the base currency while selling / buying the equivalent number of units of the counter currency.

For example, if you open open a long position of one lot for EUR/USD for the ask price of 1.4000, you are purchasing 100,000 Euro while, selling 140,000 USD.

A standard contract (one Lot) in which the USD is the counter currency one pip will equal $10 ($1 for a mini lot). For all other pairs exact pip values are slightly different and range from $8 to $10. Use our Pip Calculator to see the current pip value for all currency pairs.

To learn more about how to trade forex, visit:

Online Forex Course: Lesson 2: How Trading Works and Terminology

Forex Trading Terms (Alphabetical)