Forex Lot Size Explained: Standard, Mini and Micro
What a forex lot is, the difference between standard, mini and micro lots, what a pip is worth on each, and how to work out the right lot size for your account.
A lot is the unit of size in forex. One standard lot is 100,000 units of the first currency in the pair, and most platforms let you trade down to 0.01 lots. The size you choose decides what each pip is worth, and that decides how much a losing trade costs you.
Standard, mini and micro
| Name | Lots | Units | One pip on EUR/USD |
|---|---|---|---|
| Standard | 1.00 | 100,000 | $10.00 |
| Mini | 0.10 | 10,000 | $1.00 |
| Micro | 0.01 | 1,000 | $0.10 |
A pip on most pairs is 0.0001. On yen pairs it is 0.01. Many platforms show one extra digit, called a point or a pipette, so check that a move of 0.00010 reads as one pip on yours.
What a pip is worth
- The US dollar is second (EUR/USD, GBP/USD, AUD/USD): $10 a pip on one lot, whatever the price.
- The US dollar is first (USD/JPY, USD/CAD, USD/CHF): it depends on the price. USD/JPY at 150 is about $6.67 a pip on one lot.
- Gold (XAU/USD): one lot is 100 ounces, so a $1.00 move is worth $100. See how gold trading works.
How to pick the right size
Start from the loss you can accept, not from the size you want.
- Dollars at risk. Balance times your risk percent. 1% of $10,000 is $100.
- Stop in pips. Set it where the chart says you are wrong, not where the size looks good.
- Lot size. Dollars at risk ÷ (stop in pips × pip value of one lot).
So $100 of risk with a 25 pip stop on EUR/USD is 100 ÷ (25 × $10) = 0.40 lots. Double the stop to 50 pips, and the size halves to 0.20 lots while the risk stays at $100. The forex and gold lot size calculator does this for any pair.
Common mistakes
- Using the same lot size for every trade. With a fixed size, a wide stop quietly risks far more than a tight one.
- Sizing from leverage. High leverage lets you open a big position, but it says nothing about how big it should be.
- Forgetting costs. Spread and commission come on top. On tight stops they can be a real share of the risk.
- Risking too much. A normal run of losses at 5% a trade takes off about 40% of the account. See drawdown recovery.
Practice with it first
Size is easier to judge when you have felt it. The forex simulator has the main pairs and gold in lots, with stops and targets. Currency pairs run on generated data modeled on the real market, tagged as Generated, and gold replays real market days. Practice results don't promise real results.
Questions
- What does 0.01 lot mean in forex?
- A micro lot: 1,000 units of the first currency in the pair. On EUR/USD a one pip move is worth about $0.10 on 0.01 lots.
- How much is 1 lot in forex?
- A standard lot is 100,000 units of the first currency. On EUR/USD that is 100,000 euros, and each pip is worth $10.
- What lot size should I use for a $1,000 account?
- It depends on your stop. Risking 1% ($10) with a 20 pip stop on EUR/USD is 0.05 lots: 10 / (20 x $10). A wider stop means a smaller size.
- How do I work out the pip value?
- When the US dollar is the second currency, a pip on one lot is $10. Otherwise divide the pip size times 100,000 by the price. USD/JPY at 150 is 0.01 x 100,000 / 150, about $6.67.
- Does leverage change my lot size?
- It changes how large a position you are allowed to open, not what you should open. Size from your stop and your risk. Leverage only needs to be high enough to allow that size.