Size of a lot on Forex

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What is the size of a lot on Forex?Standard lot, mini-lot, micro-lot...
What's the difference?



This is a question that comes up often because the size of a lot varies according to brokers and the type of account.

What is the size of a standard lot on Forex?

As a general rule, the size of a lot is 100,000 units.

If you trade the EUR/USD pair, taking a lot is equivalent to opening a position of 100,000 EUR/USD.
On a position of 100,000 EUR/USD (1 lot), an upward or downward pip will change your balance by 10 USD (right-hand currency of the pair).
On a position of 100,000 EUR/USD (1 lot), the margin used is 100,000 euros.If you have an account with €5,000, this position uses a leverage of 20 (100,000 / 5,000).

If you trade the NZD/USD pair, taking a lot is equivalent to opening a position of 100,000 NZD/USD.
On a position of 100,000 NZD/USD (1 lot), an upward or downward pip will change your balance by 10 USD (right-hand currency of the pair).
On a position of 100,000 NZD/USD (1 lot), the margin used is 100,000 New Zealand dollars, i.e. 66,667 euros (if the EUR/NZD pair is currently trading at 1.50). If you have an account with €5,000, this position uses a leverage of 13 (66,667 / 5000).

NB: for some brokers, a standard lot may also be equal to 1,000,000 units.This is the case, for example, with the broker Dukascopy.

What is the size of a mini-lot on Forex?

As a general rule, the size of a mini-lot is 10,000 units.

If you trade the EUR/USD pair, taking a lot is equivalent to opening a position of 100,000 EUR/USD.
On a position of 10,000 EUR/USD (1 lot), an upward or downward pip will change your balance by 1 USD (right-hand currency of the pair).
On a position of 10,000 EUR/USD (1 lot), the margin used is 10,000 euros.If you have an account with €5,000, this position uses a leverage of 2 (10,000 / 5,000).

If you trade the NZD/USD pair, taking a lot is equivalent to opening a position of 100,000 NZD/USD.
On a position of 10,000 NZD/USD (1 lot), an upward or downward pip will change your balance by 1 USD (right-hand currency of the pair).
On a position of 10,000 NZD/USD (1 lot), the margin used is 10,000 New Zealand dollars, i.e. 6,667 euros (if the EUR/NZD pair is currently trading at 1.50). If you have an account with €5,000, this position uses a leverage of 1.3 (6,667 / 5000).

What is the size of a micro-lot on Forex?


As a general rule, the size of a micro-lot is 1,000 units.

If you trade the EUR/USD pair, taking a micro-lot is equivalent to opening a position of 100,000 EUR/USD.
On a position of 1,000 EUR/USD (1 lot), an upward or downward pip will change your balance by 0.10 USD (right-hand currency of the pair).
On a position of 1,000 EUR/USD (1 lot), the margin used is 1,000 euros. If you have an account with €5,000, this position uses a leverage of 0.2 (1,000 / 5,000).

If you are trading the NZD/USD pair, taking a micro-lot is equivalent to opening a position of 100,000 NZD/USD.
On a position of 1,000 NZD/USD (1 lot), an upward or downward pip will change your balance by 10 USD (right-hand currency of the pair).
On a position of 1,000 NZD/USD (1 lot), the margin used is 1,000 New Zealand dollars, i.e. 667 euros (if the EUR/NZD pair is currently trading at 1.50).If you have an account with €5,000, this position uses a leverage of 0.13 (667 / 5000).

How do I know the size of a lot on my trading account?



The easiest and most secure way is to simply ask your broker/trader about the value of a lot in your trading account.
If you have a standard trading account, the size of a lot is equal to that of a standard lot.
If you have a mini trading account, the size of a lot is equal to that of a mini lot.
If you have a micro-trading account, the size of a lot is equal to that of a micro-lot.

Checking the lot size:


Before you start to trade normally, it is important to make sure that the lot size is good and that it is really what you think it is.How do we make sure?

1/ Start by trying to open a 0.01 lot position on EUR/USD (if your broker allows you to do so).This enables you to check, without too much risk, that the size of a lot on your mini or micro trading account is not 100,000, or even 1,000,000.
NB: you will not be able to make a 0.01 batch transaction if you have a mini or micro account (1,000 units minimum). However, this will be possible if you process standard batches of 100,000 or 1,000,000 units.

2/ the first attempt could not be placed. Now try to open a 0.1 lot position. In theory, only the micro account cannot be placed this operation (impossible to open a 100 unit position). If the operation is successful, you are dealing with batches of 10,000/100,000/1,000,000 .

As soon as an operation can be placed, check the value of a pip.
If you have managed to open a position of 0.1 lot and a pip is worth 1 USD, it is because you are dealing with standard lots (100,000 units and 1 pip is worth 10 USD; but in this case you have opened 0.1 lot, so a pip is worth 1 USD).

If you have managed to open a position of 1 lot and a pip is worth 1 USD, it is because you are trading with mini-lots (10,000 units and 1 pip is worth 1 USD).
If you have managed to open a position of 1 lot and a pip is worth 0.1 USD, it is because you are trading with micro-lots (1,000 units and 1 pip is worth 0.1 USD).

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