Lot
The standard unit amount of currency traded in forex, equal to 100,000 units of the base currency. Lot sizes are large to magnify changes in currency values, which usually occur in a matter of a few pips.
Related terms
Contract Size
The standardised quantity of the underlying asset represented by a single contract or lot, such as 100,000 units of currency in a standard FX lot.
Read full definitionPip
The smallest standard increment by which a currency pair moves, usually the fourth decimal place (0.0001). Pips are the common unit for quoting spreads and price movements.
Read full definitionTrade Size
The number of units of product in a contract or lot.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBroker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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