Basics
What is Lot size?
By the verify.trading team · Last reviewed · How we write
A lot is the standard trade size in forex. One standard lot is 100,000 units of the base currency, a mini lot is 10,000 and a micro lot is 1,000.
Key points
- Standard 100,000 units, mini 10,000, micro 1,000.
- Lot size scales pip value in direct proportion.
- Work out lot size from the stop, not the other way round.
Lot size explained
Lot size sets how much each pip is worth, so it is the main dial for controlling risk on a trade. A smaller lot means a smaller loss for the same stop distance.
Brokers allow different minimum sizes and steps, often down to 0.01 lots. A position size calculator turns a risk amount and a stop distance into the lot size to enter.
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