What is a lot?

Yes I am a newbie and would like some info from experienced people on what a lot is.

Having traded stocks I find this lot issue confusing. A book fails to explain it in useable or practicle terms.
thanks in advance.
Zygons.

One lot is 100000 units of the base unit. For example if you buy 1 lot EURUSD you are buying 100000 Euros in exchange for 133210 Dollars. Current EURUSD price = 1.3321.

If you are using a 1:100 margin that means that you broker is going to require you to have $1332 on your account to be able to buy 1 EURUSD lot.

It is the amount of money you have when you start to trade the forex.......

I never noticed the term "lots" on the Oanda platform.

Thankyou for your responses everyone.

I understand now. FXone your practical example was most helpful.
Cheers
Zygons

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