Forex Lot Sizes Explained: Standard, Mini & Micro
If you're new to forex, 'lots' can be confusing. Unlike stocks, where you buy a number of shares, forex is traded in standardised blocks of currency called lots. Understanding lot sizes is essential because they directly determine how much each pip move is worth — and therefore how much you risk.
This guide breaks down the four lot sizes, shows how they map to units and pip value, and explains how to choose the right one.
The four lot sizes
There are four standard lot sizes in forex. A standard lot is 100,000 units of the base currency. A mini lot is 10,000 units (0.1 lots). A micro lot is 1,000 units (0.01 lots). A nano lot is 100 units (0.001 lots), offered by only some brokers.
The lot size you trade is just a multiplier on your exposure: trading 0.5 standard lots means 50,000 units. Most retail traders work in mini and micro lots, which give precise control over position size without requiring a huge account.
How lot size sets your pip value
Lot size matters because it fixes the value of a single pip. For a USD-quoted pair like EUR/USD, one pip is worth roughly $10 per standard lot, $1 per mini lot, and $0.10 per micro lot. That linear relationship is the whole point: bigger lots mean each pip move moves your account more.
So a 20-pip move is worth about $200 on a standard lot but only $20 on a mini lot. Choosing your lot size is really choosing how much each pip is worth to you.
Choosing the right lot size
Don't pick a lot size by feel — derive it from your risk. Decide the dollar amount you're willing to lose (typically 1–2% of your account), measure your stop-loss in pips, and work backwards to the lot size that makes those two numbers agree.
For example, risking $100 with a 25-pip stop and $10 pip value gives 0.40 lots. This is exactly what a lot size calculator does — it removes the guesswork so your risk stays constant no matter the pair or stop distance.
Lots, leverage and margin
Lot size and leverage are related but separate. Lot size sets your exposure (and pip value); leverage sets how much margin that exposure ties up. A larger lot needs more margin, and over-sizing relative to your account is the fastest route to a margin call. Always check the required margin before opening a large position.
Key takeaways
- →Standard = 100,000 units, Mini = 10,000, Micro = 1,000, Nano = 100.
- →Pip value scales with lot size: ~$10 / $1 / $0.10 per pip for USD pairs.
- →Choose lot size from your risk and stop distance, not by feel.
- →Larger lots need more margin — verify it before you trade.
Frequently asked questions
How many units is a standard lot?+
A standard lot is 100,000 units of the base currency. A mini lot is 10,000 units, a micro lot is 1,000 units, and a nano lot (where offered) is 100 units.
How much is a pip worth per lot?+
For pairs quoted in USD, a pip is worth about $10 per standard lot, $1 per mini lot, and $0.10 per micro lot. For other pairs it varies with the exchange rate.
What lot size should a beginner use?+
Micro lots (1,000 units) are ideal for beginners. They keep pip value small (about $0.10), so you can trade real money and learn position sizing without risking large amounts per pip.
Calculators in this guide
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For educational purposes only. Not financial advice.