Lot Sizes

Lots and Profit & Losses

The Standard Lot size is 1,00,000 Units.   Mini(10,000 Units), Micro(1,000 Units) and Nano(100 Units) Lots are also there.  But most of the brokers do not allow Nano Lots.  So, we don’t need to think about them.

As we learned that a PIP is a smallest movement in that currency and to take advantage of this movement, we trade in large amount of Units to see more profits(or Losses).  Below Chart explains you the Profit/Losses in different Lot sizes for one PIP movement of EUR/USD.

Forex Lot Sizes

Above calculations are very essential when it comes to Money Management.  Based on your Equity, you can determine the Lot size before you make any order by seeing value for every PIP movement and to determine Stop Loss and Take Profits.

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