## What Does Lot Mean in Forex? Understanding the Volume System and Leverage
### The Base Unit: Understanding the Lot
Have you heard of "lot" in the currency market and don't know what it means? The answer is simple: a lot is basically the standard unit used to measure the size of a trade. Unlike the gold market in London, where 1 lot equals 100 ounces, in forex 1 standard lot represents 100,000 units of the base currency.
Confusion usually starts here. If you're trading with US dollars as the base currency, 1 lot means you're trading USD 100,000. If your base is euro, then 1 lot = EUR 100,000
View Original### The Base Unit: Understanding the Lot
Have you heard of "lot" in the currency market and don't know what it means? The answer is simple: a lot is basically the standard unit used to measure the size of a trade. Unlike the gold market in London, where 1 lot equals 100 ounces, in forex 1 standard lot represents 100,000 units of the base currency.
Confusion usually starts here. If you're trading with US dollars as the base currency, 1 lot means you're trading USD 100,000. If your base is euro, then 1 lot = EUR 100,000