The three sizes
A standard lot is 100,000 units of the base currency. A mini lot is 10,000, written as 0.10. A micro lot is 1,000, written as 0.01. Most retail platforms let you trade in hundredths of a lot, and some go smaller. The number you type into the platform is lots, not units.
What a lot is worth per pip
On a pair quoted in dollars, one standard lot moves ten dollars per pip, a mini lot one dollar, a micro lot ten cents. This is the bridge between a chart and a bank balance, and it is worth knowing by heart for the pairs you trade.
Metals break the rule
Gold uses a 100 ounce contract, not 100,000 units. Silver uses 5,000 ounces. So one lot of gold is a completely different amount of exposure from one lot of EUR/USD, even though the platform shows the same "1.00". Sizing gold like a currency pair is the single most expensive beginner mistake in this section.
Lot size is not a preference
It is the output of a calculation. Given how much you are willing to lose and where your stop is, exactly one lot size fits. Choosing a size first and then placing a stop wherever it lands is backwards, and it is what the position size calculator exists to prevent.
In short
| Standard lot | 100,000 units — 1.00 |
|---|---|
| Mini lot | 10,000 units — 0.10 |
| Micro lot | 1,000 units — 0.01 |
| Gold lot | 100 ounces |
| Silver lot | 5,000 ounces |
Common questions
What lot size should a beginner use?
Whatever your stop and your risk limit produce, which for a small account is usually micro lots. If the calculated size comes out below the minimum your broker allows, the stop is too wide or the account is too small for that trade — not a reason to round up.
Can I trade less than 0.01 lots?
At some brokers, yes, often called nano lots. Most retail platforms stop at 0.01.
Why does one lot of gold cost so much less margin than I expected?
Because the contract is 100 ounces rather than 100,000 units. The exposure is different, the margin is different, and the pip value is different. Everything about gold has to be worked out separately.
Trading forex and CFDs on margin carries a high level of risk. Most retail accounts lose money. Nothing on this page is financial advice or a recommendation to trade.