Lot Size in Forex: Standard, Mini and Micro Lots

In forex, trades are sized in lots. The lot you choose decides how much each pip of movement is worth, which makes lot size one of the most important choices in any trade — more important, in many ways, than the direction you pick.

The common lot sizes

• Standard lot: 100,000 units of the base currency.
• Mini lot: 10,000 units.
• Micro lot: 1,000 units.
• Nano lot: 100 units, offered by some providers.

Platforms usually express these as decimals: 1.00 for a standard lot, 0.10 for a mini lot and 0.01 for a micro lot.

How lot size changes pip value

Pip value scales directly with position size. A micro lot is a hundredth of a standard lot, so each pip is worth a hundredth as much. Ten micro lots behave like one mini lot. If pips are new to you, start with what a pip is.

Lot size is a risk decision

Because pip value rises with lot size, the same price move that is a minor wobble on a micro lot can be a large loss on a standard lot. Many traders work backwards: decide the most they are prepared to lose on a trade, decide where they would exit if wrong, and only then pick the lot size that keeps the loss within that limit. Our article on forex risk management walks through that thinking.

Leverage makes size feel smaller than it is

With leverage, a small deposit can control a large position. That makes big lot sizes look affordable, but the gains and losses are still calculated on the full position. See how margin works for what happens when losses eat into the deposit.

Educational content only. Trading leveraged products can result in losses greater than you expect; consider independent financial advice.