What Is a Lot in Trading?

Explained

Typing 0.10 on a platform means a tenth of a standard lot, a mini lot. The lot size sets the pip value, and so how much you make or lose on each move. For gold, indices and oil the contract size differs between brokers, so check your broker’s contract specification.

Example

Example with made-up numbersA 0.5-lot trade on EUR/USD is 50,000 euros, and its pip value is 0.5 × 10 = 5 dollars.

Use it in Joymista

• POSITION CALCULATORLot size calculator

Related terms

• PipA pip is the unit used to measure price moves in forex: 0.0001 for most pairs and 0.01…
• Position SizingPosition size comes from the amount you accept to lose: size in lots = risk amount ÷…
• LeverageLeverage lets you open a trade bigger than your balance by putting up only part of it as…