What is Standard Lot?

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Accepted Answer

A **Standard Lot** in the foreign exchange (FX) market is the largest standardized trade size, representing **100,000 units** of the base currency in a currency pair. This volume is the foundational unit for institutional and professional traders, as it directly determines the value of a single pip movement, which is typically **$10** for major currency pairs like EUR/USD or USD/JPY.

Standard Lot

What is Standard Lot?

What is a Standard Lot and how does its size fundamentally determine the profit and loss per pip in FX trading?

How does the high notional value of a Standard Lot influence margin requirements and the execution of institutional strategies like hedging and arbitrage?

Why do professional traders favor the Standard Lot over Mini or Micro Lots, and what are the key risk management trade-offs?

When calculating market exposure, what is the relationship between a Standard Lot's notional value, leverage, and the resulting margin requirement?

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