Hello Zayn,

In forex trading, a "lot" is a unit of measurement used to describe the size of a transaction. A lot refers to a standardized quantity of a financial instrument that is traded in the forex market. The size of a lot can vary depending on the trading platform and the broker, but typically, one lot is equal to 100,000 units of the base currency in a currency pair.

For example, if you are trading the EUR/USD currency pair and you buy one lot, you are buying 100,000 euros, which is the base currency in the pair. If you sell one lot of the same currency pair, you are selling 100,000 euros.

There are also other lot sizes that traders can use, such as mini lots (10,000 units) or micro lots (1,000 units), which allow traders to trade with smaller amounts of capital. Understanding lot sizes is an essential aspect of forex trading, as it affects the amount of risk and potential reward in a trade.