Lot
A lot is the standard unit of trade size in forex. One standard lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000.
How it works
In the trading platform you enter size in lots, not dollars. 1.00 is a standard lot, 0.10 a mini lot and 0.01 a micro lot, usually the smallest step. The base currency is the first one in the pair: in EUR/USD a 1.00 lot means 100,000 euros.
The lot size sets the pip value, which is how much money you make or lose on each smallest price move. In pairs where the US dollar is second, such as EUR/USD, a pip is worth $10 for a standard lot, $1 for a mini lot and $0.10 for a micro lot.
Other instruments have their own lot sizes: for gold many brokers use 1 lot = 100 ounces, and for indices and CFDs the contract specification sets it. Check the broker's specification before you trade.
You buy 0.10 lots of EUR/USD. The price moves 30 pips your way: 30 × $1 = $30 profit. The same 30 pips against you is −$30.
Your account is $1,000 and you are willing to risk 1%, or $10, with a 20-pip stop. The pip has to be worth $10 / 20 = $0.50, which is 0.05 lots of EUR/USD.
The main mistake is picking a lot size by feel or "same as last time". A 1.00 lot on a $1,000 account means $10 per pip, and a 50-pip stop wipes out half the account. Size the lot from your risk: risk amount / (stop in pips × pip value for 1 lot).
Questions and answers
What is a lot in forex in simple terms?
It is the size of your trade. 1 lot is 100,000 units of the base currency, and 0.01 lots is 1,000 units, the most common minimum size.
How much is 1 pip worth on a 0.01 lot?
In pairs like EUR/USD or GBP/USD about $0.10. In other pairs it depends on the quote currency and the exchange rate; the broker's calculator shows the exact figure.
What lot size should I use with $100?
Lot size comes from risk and stop, not the deposit. Risking 1% ($1) with a 10-pip stop means the pip must be worth $0.10, which is 0.01 lots of EUR/USD, usually the smallest size you can open.
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Updated: 2026-10-19