Position size in trading is one of the most important things. Beginner traders very often neglect this segment of trading.
1,000 Units = 0.01 Lot.
0.01 lot size in forex or micro lot equals 1.000 units of any given currency. Position size of 0.01 lot for EURUSD currency pair, for every 10 pips gain will provide a $1 profit (10 cents per pip). So for EURUSD means that 10 pips for 0.01 lot size profit are $1.
0.01 lot size or 1000 units or micro lot is the smallest position size when we talk about standard forex accounts.
The standard lot size forex is 1 lot, and it is equal 100 000 units or $10 per pip gain.
Below you can see a Table of 3 types of position sizes:
Types of lot size:
Standard Lot
Mini-Lot
Micro-Lot
Please see the Figure below:
In the video below is a detailed explanation from our FXIGOR youtube channel:
This methodology can be extended further. So, what is a 1.00 lot in forex?
1.00 lot is a measurement of currency units that traders will buy or sell during the trading, and the standard size for a lot is 100,000 units. For example, if traders trade EURUSD, 10 pips gain for one lot size can generate a profit of $100.
Summary
Micro lot forex
Micro lot forex size represents 1000 trading units or 0.01 lot size and the smallest block of currency a forex trader can trade. In that case, 0.01 lot size profit is $1 for every 10 pips moves in the direction of a trading position. For example, if a trader trades 1 micro lot (0.01 lot) and buys EURUSD at 1.2340, if the price hits the target of 1.2350, the profit will be $1.
Mini lot forex
Mini lot forex size represents 10.000 trading units or 0.1 lot size, and it is the usually most common lot size in forex mini accounts that beginners traders use. In that case, 0.1 lot size profit is $10 for every 10 pips moves in the direction of a trading position. For example, if a trader trades 1 mini lot (0.1 lot) and buys EURUSD at 1.2340, if the price hits the target of 1.2350, the profit will be $10.
Standard lot forex
Standard lot forex size represents 100.000 trading units or 1 lot size, and it is the standard size in forex trading accounts that professional traders use. In that case, 1 lot size profit is $100 for every 10 pips moves in the direction of a trading position. For example, if a trader trades 1 lot and buys EURUSD at 1.2340, if the price hits the target of 1.2350, the profit will be $100.
