Forex lot sizes explained
So, how much is one lot in forex? It depends on whether you’re trading a standard, mini, micro, or nano lot. Forex trades are divided into these four standardised units of measurement to help account for small changes in the value of a currency.
The following examples all relate to the currency pair EURUSD, which compares the euro (the base currency) against the dollar (the quote currency). For context, if you buy EUR/USD, you’re speculating that the euro is going to strengthen against the dollar. If the quote price is currently $1.3000, that means you can exchange €1 for $1.3000. To put it the other way around, you need $1.3000 to buy €1.
What is a standard lot in forex?
A standard lot in forex is equal to 100,000 currency units. It’s the standard unit size for traders, whether they’re independent or institutional.
Example:
If the EURUSD exchange rate was $1.3000, one standard lot of the base currency (EUR) would be 130,000 units. This means, at the current price, you’d need 130,000 units of the quote currency (USD) to buy 100,000 units of EUR.
What is a mini lot in forex?
A mini forex lot is one-tenth the size of a standard lot. That means a mini lot in forex is worth 10,000 currency units. The size of a mini lot means the profit and loss effect is lower than a standard lot.
Example:
If the EURUSD exchange rate was $1.3000, one mini lot of the base currency (EUR) would be 13,000 units. This means, at the current price, you’d need 13,000 units of the quote currency (USD) to buy 10,000 units of EUR.
What is a micro lot in forex?
A micro forex lot is one-tenth the size of a mini lot. That means it’s worth 1000 units of currency. Pip movements result in a cash swing of 1 currency unit, eg €1 if you were trading EUR. Micro lots also require less leverage, so a swing won’t have as much of a financial impact as with larger lot sizes.
Example:
If the EURUSD exchange rate was $1.3000, one micro lot of the base currency (EUR) would be 1300 units. This means, at the current price, you’d need 1300 units of the quote currency (USD) to buy 1000 units of EUR.
What is a nano lot in forex?
A nano forex lot is one-tenth the size of a micro lot. It’s equal to 100 units of currency. A one-pip movement with a micro lot is equal to a price change of 0.01 units of the base currency you’re trading, eg €0.01 if you’re trading EUR.
Example:
If the EURUSD exchange rate was $1.3000, one nano lot of the base currency (EUR) would be 130 units. This means, at the current price, you’d need 130 units of the quote currency (USD) to buy 100 units of EUR.
You can find out more about how to buy currency pairs in our guide to forex trading.
