Or, In the simplest terms, the number of currency units you will be purchasing or selling.
A lot is defined as a unit of measurement for a specified transaction amount.
On the trading platform, orders are placed in sizes that are quoted as lots. It’s similar to an egg carton or an egg box.
Usually, when you buy eggs, you will purchase them in a carton or box, and one carton includes 12 eggs.
The standard lot size is 100,000 units of currency. Besides, there are mini (10,000), micro (1000), and nano (100) lot sizes.
A few brokers show quantity in lots while others display it in the actual currency units.
As we previously discussed, the variation in the currency value relative to another is measured in pips, which is a very, very small percentage of the currency value unit.