“Lots” are how trade sizes are measured in forex and gold. Choosing the right lot size is one of the most important decisions you’ll make on every trade — it decides how much each price move is worth to you.
The main lot sizes in forex
| Lot type | Lot size on MT5 | Units of currency | Value of 1 pip (EUR/USD) |
|---|---|---|---|
| Standard lot | 1.00 | 100,000 | $10 |
| Mini lot | 0.10 | 10,000 | $1 |
| Micro lot | 0.01 | 1,000 | $0.10 |
Some brokers also offer nano lots (100 units) on special account types.
Example: if you buy 0.05 lot of EUR/USD and the price rises 40 pips, your gain is 40 × $0.50 = $20.
Lot sizes in gold
For gold (XAU/USD), lots are usually measured in ounces:
| Lot size | Ounces | Value of a $1 move in gold |
|---|---|---|
| 1.00 | 100 oz | $100 |
| 0.10 | 10 oz | $10 |
| 0.01 | 1 oz | $1 |
So if gold rises $5 and you hold 0.10 lot, your gain is 5 × $10 = $50.
How to choose the right lot size
The best way is to work backwards from your risk:
- Decide your risk per trade — for example 1% of a $2,000 account = $20.
- Set your stop-loss distance — for example 20 pips.
- Divide risk by stop: $20 ÷ 20 pips = $1 per pip.
- Find the lot size: $1 per pip on EUR/USD = 0.10 lot.
Our position-size calculator does this instantly.
Why lot size matters more than leverage
Leverage only decides how much margin you need. Your lot size decides how much you gain or lose. Two traders with the same leverage can take very different risks simply by choosing different lot sizes.
Quick tips
- New traders often start with micro lots (0.01) to keep risk small while learning.
- Check your broker’s minimum and maximum lot size and step size (usually 0.01).
- Remember that pip values differ for pairs not quoted in US dollars.
Frequently asked questions
What lot size should a beginner use?
Many beginners start with 0.01 lots. The right size depends on your account balance and how much you’re willing to risk per trade.
Is 0.01 lot a good size for a $100 account?
It’s the smallest common size, and keeps each pip worth about $0.10 on EUR/USD. Always use a stop-loss so a single trade can’t do too much damage.
Next step: Learn lots, pips and position sizing in Lesson 8 — or try the position-size calculator.
Capital at risk. This article is general education, not investment advice.