Lot Sizes Explained: Standard, Mini, Micro, and Nano
Position sizing in forex uses lot sizes. Learn the difference between standard, mini, micro, and nano lots. Standard, mini and micro lots — pip values worked.
What Are Lot Sizes?
A lot is the standard unit for forex trading. Different lot sizes control different amounts of currency, which determines your risk per pip and margin requirement.
The Four Lot Sizes
- Standard lot: 100,000 units — 1 pip = $10 (USD quote)
- Mini lot: 10,000 units — 1 pip = $1
- Micro lot: 1,000 units — 1 pip = $0.10
- Nano lot: 100 units — 1 pip = $0.01
Choosing Your Lot Size
Your lot size should be determined by your risk per trade, not by how much you want to make. Formula: Lot size = Risk amount / (Stop in pips × pip value per lot). Example: Risk $50, stop 25 pips, standard lot pip value $10 → 50 / (25 × 10) = 0.02 lots (2 mini lots).
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.