Step by step
How to read it
- 1The trade starts here.
- 2Price moves 10 pips — the same move for everyone.
- 3What it is worth depends on the lot size: 1 lot, 0.1 lot or 0.01 lot.
Watch out
Common mistake
Picking a lot size by habit. The same lot is a tiny risk with one stop and a huge one with another.
Hypothetical numbers
Worked example
- 1 standard lot = 100,000 units · 0.1 = mini · 0.01 = micro.
- On EUR/USD, 1 pip on 1 lot ≈ 10 USD.
- 10 pips: 1 lot ≈ 100 USD · 0.1 lot ≈ 10 USD · 0.01 lot ≈ 1 USD.
In one line
Definition
A standard unit of size in forex; one standard lot is 100,000 units of the base currency.
Check yourself
Check yourself
On EUR/USD, 0.1 lot moves 20 pips. About how much is that?