Lots: Standard, Mini and Micro

In forex, trade size is measured in lots. A lot is a standard number of units of the base currency. The traditional standard lot is 100,000 units, which is large for most individual traders, so brokers also offer mini, micro and sometimes nano lots. The lot size determines how much each pip is worth, how much margin is required and how big your exposure is. Choosing lot sizes based on risk, not on what the broker allows, is one of the most important habits in forex trading.

Lot sizes#

Many platforms show size as a decimal of a standard lot: 0.10 lots is a mini lot, 0.01 lots is a micro lot.

Exposure and leverage#

Lot size sets your notional exposure, the full value of the position. Margin is only a fraction of it.

Choosing lot size by risk#

The right lot size comes from your stop distance and risk per trade, not from available margin.

lots = account risk in dollars / (stop in pips × pip value per lot)

Why micro and nano lots matter#

• Precise sizing: small accounts can follow 0.5% to 1% risk rules.
• Learning: traders can trade live with very small amounts after Paper Trading.
• Scaling: positions can be built or reduced in small steps. See Scaling In and Pyramiding.

Lots on non USD pairs#

For pairs where the dollar is not the quote currency, pip value per lot changes with exchange rates. One standard lot of USD/JPY at 150.00 has a pip value of about $6.67; one standard lot of EUR/GBP has a pip value of £10, about $12.70 at GBP/USD 1.27. See Pips and Pipettes.

Lots vs units#

Some brokers let traders set any number of units, such as 3,700, rather than lots. This allows exact risk based sizing. It works the same way: pip value = units × pip size.

Common mistakes#

• Trading standard lots on small accounts because leverage allows it.
• Keeping the same lot size regardless of stop distance, which makes risk vary from trade to trade.
• Forgetting that pip values differ across pairs.
• Adding lots on losing trades without a plan.

Frequently asked questions#

What is a lot in forex?#

A standardised trade size. A standard lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000.

How much is a standard lot worth?#

It controls 100,000 units of the base currency, for example €100,000 in EUR/USD, worth about $108,500 at 1.0850.

What lot size should a beginner use?#

A size based on risk: typically risking 1% or less of the account per trade, which for small accounts usually means micro or mini lots.

Next, learn how leverage and margin work in forex in Leverage and Margin in Forex.