Trading units (aka lots, aka position size) is one of those trading terms that seem simple but can be quite confusing for someone who’s just come into the trading world.

The reason behind this is that different types of trading require different terminology to describe them. Forex and stocks have different predefined sizes for trading and switching between the two can cause some ambiguity. Trading expert David Jones is on deck to break down the explanation of what lots and units are to their smallest parts and make it simple for everyone who’s struggled with them.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.