In plain English
What Standard lot means
In many retail FX markets, one standard lot represents 100,000 units of the first currency in the pair. For example, in EUR/USD, one standard lot is 100,000 euros. This convention makes it easier to quote position size, margin, and pip value, but it is a market convention rather than a universal legal rule.
Why it matters
Because standard lots are large, even small price changes can create meaningful gains or losses. Understanding the lot size helps you estimate exposure before entering a trade and compare it with your account equity and margin. It also helps avoid mistakes when moving between standard, mini, and micro lot order sizes.
Example
Buying 1 standard lot of EUR/USD means buying 100,000 euros and selling the dollar equivalent. If the pair moves 1 pip, the approximate value of that move is usually about $10 for a USD-quoted account, assuming a typical pip convention. This is simplified and can vary by pair and account currency.
Quick answers
Common questions
Is a standard lot always 100,000 units?+
In spot FX, that is the common convention. Some products use different contract sizes, so the product specification still matters.
Why does lot size affect pip value?+
Because a pip is applied to the position’s notional size. Larger positions make each pip worth more in account currency terms.
Sources