What you'll learn
- Convert between lots and units
- Know the pip value of each lot size
- Read a lot size on a platform without error
The sizes
| Name | Units | Platform volume | Pip value, USD-quoted pair |
|---|---|---|---|
| Standard lot | 100,000 | 1.00 | 10 dollars |
| Mini lot | 10,000 | 0.10 | 1 dollar |
| Micro lot | 1,000 | 0.01 | 10 cents |
| Nano lot | 100 | 0.001 where offered | 1 cent |
Reading the volume field
The field on the order ticket is in lots. 0.5 is half a standard lot, 50,000 units. 0.05 is five micro lots, 5,000 units. Brokers set a minimum, usually 0.01, and a step, usually 0.01. The most expensive typo in forex is a misplaced decimal here, and the habit that prevents it is stating the size out loud in units before clicking.
Lots and the base currency
A lot is 100,000 units of the base currency, so one lot of EUR/USD is 100,000 euros, one lot of USD/JPY is 100,000 dollars and one lot of GBP/USD is 100,000 pounds. The notional value in your account currency therefore varies by pair, which is why margin and pip value differ across pairs at the same lot size.
Contract sizes on other instruments
CFDs on gold, indices and shares use their own contract sizes: a lot of gold is often 100 ounces, a lot of an index one contract at a multiplier per point, a lot of a share one or one hundred shares. The symbol specification states the contract size and the tick value, and it must be read for every new instrument rather than assumed.
Key takeaways
- Standard 100,000, mini 10,000, micro 1,000 units; 1.00, 0.10, 0.01 on the platform.
- Pip value scales with lot size: 10 dollars, 1 dollar, 10 cents on USD-quoted pairs.
- A lot is in base currency, so notional value varies by pair.
- Read the contract size for every instrument.
Knowledge check
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This lesson is general education, not advice. Risk disclosure.