Lot (forex)
A lot is the unit of volume of an order. In forex, a standard lot is 100,000 units of the base currency; 0.1 lot (mini) is 10,000 and 0.01 lot (micro) is 1,000. The lot sets the pip value and the required margin. Run this calculation now: what a lot is actually worth
Standard, mini, micro and nano
Brokers express volume as fractions of a standard lot: 1.00 is one 100,000 lot; 0.10 is a mini; 0.01 is a micro. Some offer 0.001 (nano). The minimum step — usually 0.01 — is what limits how finely risk can be adjusted.
On index, metal or crypto CFDs, the 'lot' is the contract size defined by the broker, and it varies: 1 lot of gold is often 100 ounces, but not everywhere. Your broker's contract specification is the only source.
The lot comes from risk, not the other way round
The right path is: cash risk ÷ (stop in pips × pip value per lot) = lots. With 250 of risk, a 40-pip stop and 10 per pip per lot: 250 ÷ 400 = 0.62 lot, rounded down to the broker's step.
Choosing the lot first and adjusting the stop afterwards inverts the calculation and is the origin of a large share of daily limit breaches.
FAQ
How much is 0.01 lot on EURUSD?
1,000 euros of notional, with a pip value of 10 US cents. It is the smallest volume at most brokers.