What Is a Lot in Trading and How to Size Your Trade
A lot is the unit that measures the size of a trade. In forex, a standard lot is 100,000 units of the first currency in the pair: buying 1 lot of EUR/USD means buying €100,000. Since few people trade that much, fractions are used: 0.1 lots (mini lot) and 0.01 lots (micro lot). The lot size decides how much you make or lose for every pip the price moves.
Lot types
| Lot | Units | EUR/USD pip value |
|---|---|---|
| Standard (1) | 100,000 | $10 |
| Mini (0.1) | 10,000 | $1 |
| Micro (0.01) | 1,000 | $0.10 |
What a pip is and what it is worth
A pip is the fourth decimal of the price on most pairs (1.1225 to 1.1226) and the second on yen pairs (157.67 to 157.68). Its money value depends on the pair and your account currency:
- On pairs quoted in USD (EUR/USD, GBP/USD), one pip on one lot is always $10.
- On USD/JPY, one pip on one lot is ¥1,000: at 157.67, about $6.34.
- On a euro account, the $10 is converted: at an EUR/USD of 1.1225 it is €8.91.
Work out the pip value for any pair and account.
How to size a trade from your risk
The formula is always the same:
Lots = money at risk ÷ (stop in pips × pip value per lot)
Example: $10,000 account, 1% risk ($100) and a 30-pip stop on EUR/USD: $100 ÷ (30 × $10) = 0.33 lots. Always round down to the broker’s minimum step (usually 0.01).
EUR/USD lot size calculator, which does this with your account and stop.
Gold, indices and crypto: the lot changes
Outside forex, “1 lot” does not mean the same at every broker. On gold (XAU/USD) it is usually 100 ounces: a $1 move is $100 per lot. On indices such as the S&P 500, a lot can be $1 or $10 per point depending on the broker, and on Bitcoin, 1 BTC. Check the contract specification on your platform before trading. Gold lot size · S&P 500.
Common lot size mistakes
- Always using the same lot whatever the stop: with a stop twice as wide, you risk twice as much.
- Forgetting your account currency: on a non-USD account, your risk moves with the exchange rate.
- Copying someone else’s lot size without knowing their capital or stop.
Examples use the ECB reference rates of October 2, 2026. Information only, not investment advice.
Frequently asked questions
How many units are in a lot?
A standard lot is 100,000 units of the base currency; a mini lot is 10,000 (0.1 lots) and a micro lot is 1,000 (0.01 lots).
How much is a pip worth on EUR/USD?
$10 per standard lot, $1 per mini lot and $0.10 per micro lot.
What lot size should I use with $1,000?
It depends on the stop: with 1% risk ($10) and a 20-pip stop on EUR/USD, 0.05 lots. With a wider stop, less.
Is a gold lot the same as a forex lot?
No: a gold lot is usually 100 ounces, so a $1 move is $100 per lot. For indices and crypto each broker sets its own size.