This article has been translated from English to Gen Z Slang.

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Yo fam, welcome to your crash course in forex slang! 🤑 So in forex, peeps trade currency in chunks known as lots. Basically, it's the amount of money you gonna buy or sell. Think of a “lot” as your money transaction squad. Whenever you line up those trades on your app, you’re dealing in sizes called lots. It's like buying a meme-y bunch of eggs – ya know, like a box holding 12. Egg Carton So like, the standard lot size comes as 100,000 currency units. There’s also mini, micro, and nano vibes too – that's 10,000, 1,000, and 100 units. Choose your squad size accordingly, homie!
Lot Number of Units
Standard 100,000
Mini 10,000
Micro 1,000
Nano 100
BTW, some brokers might list quantities in “lots”, while others aren’t playing and just show the units straight up.
Here's some tea: The currency game is measured in “pips.” They're like microscopic changes in a currency's value. To snag those chaotic currency gains or pain, you gotta shell out on major currency heaps to see some real moves in your cash game. You feel? Lemme break down an example if you're set on a 100,000-level game. We can peep how these pips work with dat math:
  1. USD/JPY at 119.80: (.01 / 119.80) x 100K = pocketing $8.34 per pip
  2. USD/CHF at 1.4555: (.0001 / 1.4555) x 100K = banking $6.87 per pip
If USD ain't first up, the formula gets a remix.
  1. EUR/USD at 1.1930: (.0001 / 1.1930) x 100K = 8.38 x 1.1930 = rounds up to $10 per pip
  2. GBP/USD at 1.8040: (.0001 / 1.8040) x 100K = ends up around $10 per pip.
Here’s the basics on pip vibes for EUR/USD and USD/JPY, sized by lot squads:
Pair Close Price Pip value per:
Unit Standard lot Mini lot Micro lot Nano lot
EUR/USD Any $0.0001 $10 $1 $0.1 $0.01
USD/JPY 1 USD = 80 JPY $0.000125 $12.5 $1.25 $0.125 $0.0125
Always, your broker’s got their own pip story, but still got your back to keep you informed of current pip vibes. As your trading game shifts, so do those pip values, totally depending on the currency game you’re playing. different lot types

What’s that leverage?

Wondering how ya can glow-up small trades to the big leagues? Your broker's like your buddy who fronts you $100K to snag some currencies. Chill! All you gotta throw down is $1,000 as your trust deposit – you'll prolly get it back. Mindblowing, I know. That's the hack behind forex trading with leverage. Forex Lots Leverage is whatever floats your broker's boat and whatever makes you comfy. Brokers ask for “margin” as a deposit to go YOLO on trading. Drop your stacks first, hit trades after, cause they’ll let you in on how much margin you need per trade-size (lot).
Example hype: If you’re rollin' with 100:1 leverage, and eying that baller $100K position but got only $5K in the bank, your broker’s gonna snag $1K as a deposit. YASSS, leverage! Losses or wins? They just give or take from your ultimate account score. Each lot’s margin needs vary by broker so peep their vibes. So let's say the broker's math is like, ‘Yo man, I need 1% margin.’ That means flexin’ $100K nets your broker a $1K deposit per position. When you wanna cop 1 standard lot (100,000 piece) of USD/JPY, leverage is 100:1 — you cool by putting up $1K as a safety deposit. Nope, that $1K isn’t a fee; it’s a deposit. When that biz closes, you get it back. Bro wants that deposit to cushion any fallout if the market does your bets dirty. A tristique claim on USD/JPY’s your lone wolf on your profile’s pie chart; maintain a least $1K in assets, or nah fam, they’ll auto-remove it — to duck deep red territory in your bank numbers.
Riddle? If USD/JPY’s bad choices wreck equity below $1K, closes automatic to keep from further bad vibes. Knowing how margin trading rocks is key – we’ve got mega lesssons all about it later in School. Real talk, lane of luxury essentials not to blow up your mon-eye! Let's vibe on... 😎

Cash Flow Vibes: Profit & Loss

Locked the tee about pips and leverage, let’s flex those profit calculations. Roll U.S. dollars, pwn Swiss francs. Shop partner’ll quote rate: 1.4525 / 1.4530.
  1. Cost for buying U.S. dollars is “ASK” site at 1.4530.
  2. Going baddie by copping 1 homie-standard lot (100,000 units) at 1.4530.
  3. Vibing it later at 1.4550 for outsies.
  4. New numbers spitting 1.4550/1.4555.
    Initially when you bought to hop in, you sold to exit pie-up – the “BID” role at 1.4550.
  5. The scope pasos from 1.4530 to 1.4550 equals .0020 or 20 pips
  6. Formula grind times out to (.0001/1.4550) x 100K gives $6.87 per pip x 20 pips = hooray for $137.40. 💰

Mind that Bid/Ask Spread

Whenever you jig in or out anything, future spreads def count in your quote bid/ask. A simple chat: buy’s by the ASK price.⏩ Off load? Hit the bar with that BID price. Next on your playlist: fresh forex lingo recap. 🌊