What Is a Lot in Forex? Standard, Mini and Micro Lots
A lot is the standard unit for measuring the size of a forex trade. One standard lot is 100,000 units of the base currency, a mini lot is 10,000 units and a micro lot is 1,000 units. Lot size is one of the main factors that determines your risk, because it sets how much each pip of price movement is worth.
Key takeaways
- 1 standard lot = 100,000 units of the base currency; 1 mini lot = 10,000; 1 micro lot = 1,000.
- Lots are written as decimals on most platforms — 0.10 is a mini lot, 0.01 a micro lot.
- On a USD-quoted pair traded from a USD account, one pip is worth $10 per standard lot, $1 per mini lot and $0.10 per micro lot.
- Lot size is one of the main factors that determines risk; calculate it from your risk per trade and stop-loss distance, not from how much margin is available.
Lot sizes at a glance
| Lot type | Units of base currency | Written as | Pip value (EUR/USD, USD account) |
|---|---|---|---|
| Standard | 100,000 | 1.00 | $10.00 |
| Mini | 10,000 | 0.10 | $1.00 |
| Micro | 1,000 | 0.01 | $0.10 |
| Nano (commonly referred to as; not offered by all brokers) | 100 | 0.001 | $0.01 |
“Units” always refers to the base currency — the first currency in the pair. One standard lot of GBP/USD is £100,000; one standard lot of USD/JPY is $100,000.
Lot size vs position size
Position size is how large a trade is. It can be expressed in lots, in units of the base currency or as a money value. Lot size is the standardised unit used to express it on a trading platform. A position of 0.35 lots, 35,000 units of EUR/USD and roughly €35,000 are the same position described three ways.
Why lot size matters
Lot size sets the value of every pip. The same 30-pip move produces very different results depending on position size:
Same move, different lot sizes
EUR/USD rises 30 pips, USD account:
- 1.00 lot: 30 × $10 = $300
- 0.10 lot: 30 × $1 = $30
- 0.01 lot: 30 × $0.10 = $3
Lot size, leverage and margin
The notional value of your position is the number of units multiplied by the price. With leverage, you only deposit a fraction of it as margin.
Margin for one standard lot
1 lot of EUR/USD at 1.0850 is worth $108,500. At 30:1 leverage — the maximum for retail clients on major currency pairs under EU and UK rules; limits differ elsewhere — the required margin is $108,500 ÷ 30 ≈ $3,617.
Being able to open a large position does not mean you should. Available margin tells you the maximum size your broker allows, not a safe size.
How to calculate lot size in forex
Work backwards from risk:
- Decide how much of your account you are prepared to risk on the trade. Some traders use ranges such as 0.5–2% of the account.
- Measure the distance to your stop loss in pips.
- Divide the risk amount by (stop distance × pip value per lot).
lots = risk amount ÷ (stop loss in pips × pip value per standard lot)
Worked example
$5,000 USD account, 1% risk ($50), 25-pip stop on EUR/USD (pip value about $10 per standard lot on a USD account):
$50 ÷ (25 × $10) = 0.20 lots
Frequently asked questions
How many dollars is 1 lot in forex?
One standard lot is 100,000 units of the base currency — the first currency in the pair — not necessarily $100,000. For EUR/USD that is €100,000, worth about $108,500 at 1.0850; for GBP/USD it is £100,000; for USD/JPY it is $100,000. With leverage, only a fraction of that value is needed as margin.
What lot size should a beginner use?
Micro lots (0.01) are commonly used while learning, because one pip on a USD-quoted pair is worth about $0.10 on a USD account. The appropriate size depends on the account balance, the risk per trade and the stop-loss distance rather than on experience alone.
What is a nano lot?
A nano lot is commonly referred to as 100 units of the base currency (0.001 lots). Not all brokers offer it, and the smallest trade size and how it is labelled vary by broker and platform.
Related articles
- What Is a Pip in Forex? Meaning, Pip Value & Examples
Learn what a pip is in forex, how pip value is calculated, how pips differ for JPY pairs, and see examples for standard, mini and micro lots.
- What Is Leverage in Forex? How It Works, Limits and Risks
Leverage lets forex traders control large positions with a small deposit. Learn how leverage ratios work, regulatory limits and why it multiplies risk.
- What Is Margin in Forex? Used, Free Margin and Margin Level
Margin is the deposit needed to open a leveraged forex trade. Learn required margin, used margin, free margin, equity and margin level with examples.
- How Does Forex Trading Work? A Step-by-Step Explanation
How forex trading works — buying and selling currency pairs, how profit and loss are calculated, the role of brokers, leverage and trading costs.
Glossary terms
- Contract size
Contract size is the number of units of the base currency in one lot. For a standard forex lot it is commonly 100,000 units.
- Pip
A pip is the standard unit for measuring price changes in a currency pair — 0.0001 for most pairs and 0.01 for pairs quoted in Japanese yen.
First published 26 September 2026. Last fact-checked 28 September 2026.This article is for educational purposes only and is not investment advice.