Lot Size

Lot size refers to the standardized quantity of a financial instrument being traded, most commonly used in the Forex market. In Forex, one standard lot is equal to 100,000 units of the base currency in a currency pair. There are also smaller lot sizes to accommodate different account sizes and risk levels: a mini lot is 10,000 units, a micro lot is 1,000 units, and a nano lot is 100 units.

Understanding lot size is important because it directly impacts the value per pip and overall risk exposure. For example, when trading a standard lot of EUR/USD, each pip movement is typically worth $10. With a mini lot, it’s around $1 per pip, and with a micro lot, about $0.10 per pip.

Browse through other terms in our Trader’s Dictionary.