Lot: meaning in forex and gold trading
A lot is a standard trade size: a standard lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000.
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Lot: A lot is a standard trade size: a standard lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000.
Lot sizes
In forex, position size is measured in lots. One standard lot is 100,000 units of the base currency. A mini lot (0.10) is 10,000 units and a micro lot (0.01) is 1,000 units. Most retail platforms let you trade in steps of 0.01 lots.
| Lot | Units | Pip value on USD quoted pairs |
|---|---|---|
| 1.00 standard | 100,000 | $10.00 |
| 0.10 mini | 10,000 | $1.00 |
| 0.01 micro | 1,000 | $0.10 |
Lots on gold
Gold contracts are usually quoted per ounce. A common CFD specification is 100 ounces per standard lot, so a 1 dollar move in XAU/USD is worth 100 dollars per lot. Some brokers use different sizes, so check the contract before you size a gold trade with the gold position size calculator.
Choosing a lot size
The lot size should come last, not first. Decide how much of your account you will risk, measure the distance to your stop loss, then calculate the lot that makes that stop cost the amount you chose. That process is called position sizing.
Worked example
Your account is $5,000 and you risk 1%, or $50. The EUR/USD stop is 25 pips. One standard lot is $10 per pip, so 25 pips cost $250 per lot. $50 divided by $250 is 0.20 lots.
Common mistakes
- Trading the same lot size on every pair regardless of stop distance.
- Forgetting that gold lots are often 100 ounces.
If you follow trade signals, for example the gold signals or EUR/USD signals, understanding this term helps you size and manage each trade yourself. The free Forexuro Telegram channel shares daily market updates where these ideas are used in practice.
Related terms
Tools and guides
Frequently asked questions
How much is 0.01 lot?
A micro lot of 1,000 units. On USD quoted pairs it is worth about 10 cents per pip.
What lot size is right for a small account?
The one that keeps the loss at your stop within your chosen risk, often 1% or less. Use a calculator rather than a fixed lot.
Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.