Lots & pip value
Trade size comes in lots
In forex you don't pick a dollar amount, you pick a size in lots. A standard lot is 100,000 units of the base currency, a mini lot (0.10) is 10,000 and a micro lot (0.01) is 1,000. Beginners usually start with micro or mini lots.
Remember: Bigger lot = each pip is worth more money.
What a pip is worth
On pairs quoted in US dollars (EUR/USD, GBP/USD, AUD/USD, NZD/USD), one pip is worth about $10 on a standard lot, $1 on a mini lot and $0.10 on a micro lot. Your profit or loss is just: pips × pip value. 20 pips on a mini lot = 20 × $1 = $20. On other pairs your platform works the value out for you.
Test yourself
How many units is one standard lot?
100,000Standard 100,000, mini 10,000, micro 1,000.
How much is 1 pip worth on 1 standard lot of EUR/USD?
About $10100,000 × 0.0001 = $10.
0.01 lots is called a…
Micro lotMicro = 0.01 (1,000 units).
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.