FOREX BASICS
What Is Lot Size & How To Calculate It
Learn what a “lot” is in forex & CFDs, standard/mini/micro lot sizes, how to calculate position value and pip value, and how lot sizing differs for indices, commodities, and crypto—plus worked examples and a handy pairs table.
Forex Education
Risk Management
Department
OTM Academy
Category
Fundamental Analysis
Definition: What Is a Lot in Trading?
The “lot” is the unit that defines your position size in the market. It’s the contract size for a trade. The number of lots you choose determines how much capital is actually at work. Bigger lots = larger exposure and risk; smaller lots = tighter risk.
This guide gives you a clear, practical understanding of lot sizes across assets (forex, indices, commodities, crypto) and how to calculate them in real trades.
Core Lot Types in Forex & CFDs
Standard Lot (1.00): the reference size in spot forex, equal to 100,000 units of the base currency.
Mini Lot (0.10): equal to 10,000 units of the base currency.
Micro Lot (0.01): equal to 1,000 units of the base currency.
Note: In CFDs on indices/commodities/crypto, “1 lot” maps to the platform’s contract spec (e.g., 1 index contract, 100 oz gold, 1 BTC). Always check the contract size.
Formulas & Quick Examples
Position notional (forex)Position = Lots × ContractSizePerLot
Example: 2 lots EUR/USD → 2 × 100,000 EUR = 200,000 EUR.
Pip value (forex, USD quote)PipValue = (1 pip / QuoteRate) × Lots × ContractSize
Example: 2 lots EUR/USD @ 1.0000: (0.0001 / 1.0000) × 2 × 100,000 = $20 per pip.
Reference table – standard lot (1.00) by pair
Pair | Lots | Investment Size (Base) |
|---|---|---|
EUR/USD | 1.00 | 100,000 EUR |
GBP/USD | 1.00 | 100,000 GBP |
USD/JPY | 1.00 | 100,000 USD |
EUR/CHF | 1.00 | 100,000 EUR |
AUD/USD | 1.00 | 100,000 AUD |
NZD/USD | 1.00 | 100,000 NZD |
EUR/GBP | 1.00 | 100,000 EUR |
On MetaTrader, a standard lot = 100,000 units of the base currency.
Standard, Mini & Micro in Practice
Standard Lot (1.00)
EUR/USD 1.00 lot → contract value 100,000 EUR.
GBP/USD 1.00 lot → 100,000 GBP.
USD/JPY 1.00 lot → 100,000 USD.
Typically used by well-capitalized accounts or when leverage and risk controls are tight.
Micro Lot (0.01)
0.01 lot = 1,000 units of base currency.
Best for beginners and precise risk control—lets you fine-tune stop size and keep risk per trade consistent.
Indices, Commodities & Crypto (CFDs)
Indices (CFDs)
1 lot = 1 index contract (spec per symbol).
Each full index point usually has a fixed cash value (e.g., 1.0 per point).
Example: CAC40 from 5280.0 → 5281.0 = ±1 per lot (check your symbol’s point value and minimum tick).
Commodities (CFDs)
Gold (XAUUSD): 1 lot often = 100 oz.
Tick size example: 0.01 → cash value defined in specs (e.g., 0.08 quoted currency per 0.01 for 1 lot in the example text).
Move from 1347.60 → 1347.70 = ±8 (per the stated spec).
Crypto (CFDs)
BTCUSD: 1 lot often = 1 BTC.
Tick size example: 0.01 → $0.01 per tick for 1 lot.
Move from 7195.00 → 7196.00 = ±$1.00 per 0.01 × 100 ticks.
Key takeaways & risk note
Larger lots boost exposure and pip/tick value—great when right, costly when wrong.
Size positions to your stop distance and risk % per trade; use micro/mini lots to keep risk consistent.
New to sizing? Practice first on a demo to internalize contract specs and pip/tick values for each market you trade.
