What is a lot in forex?
A lot is the unit of trade size. Knowing what 0.01, 0.10 and 1.00 lots really mean makes pip value and risk much easier to work out.
For information only, not financial advice. Trading carries a high risk of loss. Results depend on the values you enter and on your broker's contract specifications. Risk disclosure
The short answer
A lot is a fixed amount of the base currency, the unit in which you choose the size of a trade. One standard lot is 100,000 units. You can buy or sell fractions of a lot, and brokers usually allow steps of 0.01.
Lot sizes at a glance
| Lot type | Lots | Units of the base currency | Pip value, USD-quoted pair |
|---|---|---|---|
| Standard | 1.00 | 100,000 | $10 |
| Mini | 0.10 | 10,000 | $1 |
| Micro | 0.01 | 1,000 | $0.10 |
| Nano | 0.001 | 100 | $0.01 |
The pip values in the last column are for a pair quoted in US dollars, such as EUR/USD, on a USD account. On other pairs and account currencies they change, and the pip value calculator works them out. Most brokers do not offer nano lots.
Reading a lot size
- 0.01 lots is 1,000 units, one micro lot.
- 0.05 lots is 5,000 units.
- 0.25 lots is 25,000 units, a quarter of a standard lot.
- 2.00 lots is 200,000 units, two standard lots.
To go from lots to units, multiply by 100,000. To go from units to lots, divide by 100,000. The lot size converter does the conversions in every direction.
A lot is not the same everywhere
For currency pairs, a lot is normally 100,000 units of the base currency. Other instruments differ. Gold is often 100 ounces per lot, and indices, oil and crypto have their own contract sizes, which also change from broker to broker. Always read the contract specification for the instrument before you work out risk.
Lot size, risk and margin
The lot size, together with the pip value, decides how much each pip is worth to you, and so how much a stop-loss would cost. It also sets the margin needed. A trade of 0.20 lots of EUR/USD with a 50 pip stop risks 0.20 x 50 x $10 = $100. Choosing the lot size from the amount you want to risk, and not the other way round, is what the position size guide is about, and the position size calculator does it for you.
For information only, not financial advice. Check lot sizes and pip values with your broker before trading. Trading carries a high risk of loss.
Frequently asked questions
+How many units are in a standard lot?
100,000 units of the base currency. For EUR/USD that is 100,000 euros.
+What is a 0.01 lot?
A micro lot, 1,000 units of the base currency. It is the smallest size many brokers offer.
+How much is one pip worth on a micro lot?
For a pair quoted in US dollars and a USD account, about $0.10. A mini lot is $1 and a standard lot is $10.
+Is a lot the same on every instrument?
No. Currency pairs normally use 100,000 units, but gold is often 100 ounces per lot and indices or crypto differ again. Check your broker's contract specification.
+What does 0.25 lots mean?
A quarter of a standard lot, or 25,000 units of the base currency.