Glossary
Lot size
Lot size is the size of a trade, measured in standard units called lots.
What it means
In forex, one standard lot is 100,000 units of the base currency. A mini lot is 10,000 units, or 0.1 lots, and a micro lot is 1,000 units, or 0.01 lots. Indices, metals and other CFDs use contract sizes set by the broker or platform.
Lot size is how traders control risk per trade. On EUR/USD, and on any pair quoted in US dollars, one standard lot moves $10 for each pip. The free lot size calculator on this site does this math for any pair.
Many prop firms cap lot size per trade or in total, and futures firms cap the number of contracts instead.
Worked example
A trader on a $100,000 account wants to risk 1%, or $1,000, on a trade with a 20 pip stop loss. Each lot risks 20 pips at $10, or $200. The position size is $1,000 divided by $200, which is 5 lots.
Free tools that use this
- Lot size calculatorThis calculator gives the position size that loses your chosen risk, and no more, if your stop is hit. In words: lot size equals the amount you...
- Trade plannerThe trade planner sizes a trade from your risk and stop, then shows what it could win and what a loss would leave of today's room before your...
- Pip value calculatorThis calculator shows what one pip, point or tick is worth for your position, in your account currency. In words: pip value equals the size of one...
- Risk to reward calculatorThis calculator turns what a trade risks and what it aims to make into a risk to reward ratio, and shows the win rate you need to break even. In...
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