What is a Lot in Forex Trading?
The unit of volume that forms the foundation of almost all trading calculations, including your rebates.
Definition of a Lot
A lot is a standardized unit used to measure transaction volume in forex. 1 standard lot is equivalent to 100,000 units of the base currency. So if you open a 1 lot position on EUR/USD, it means you are trading 100,000 Euros.
Types of Lots
- Standard Lot: 100,000 units
- Mini Lot: 10,000 units (0.1 lot)
- Micro Lot: 1,000 units (0.01 lot)
- Cent Lot: A micro lot variation used in Cent accounts, where typically 1 unit = 1 cent of the account currency
Why are Lots Important for Rebates?
Myfxrebate rebates (and almost all other rebate platforms) are calculated per lot, not based on the size of your profit or loss. This means if a broker provides a rate of $8/lot and you trade 20 lots in a month, your estimated rebate will be $8 × 20 = $160, regardless of your trading profit/loss that month. This is why high-volume traders (including scalpers) benefit the most from rebate programs.
How to Calculate Your Trading Volume
Total volume = total sum of lots from all closed positions within a given period. If you open 5 positions of 0.5 lots each in a single day, your volume for that day is 2.5 lots. Most brokers display this volume history in your account statements or trading platform transaction history.
Want to see your estimated rebate based on your lot volume? Try our rebate calculator.
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