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📏 What is Lot Size in Forex? Complete Guide for Beginners [2025]
Learn how lot size affects your trade volume, pip value, and risk in the forex market.
🔹 What is a Lot in Forex?
A lot is the standardized quantity of currency you trade in forex. It determines the size of your position and directly affects the pip value and your risk exposure.
📦 Types of Lots
- Standard Lot: 100,000 units of base currency
- Mini Lot: 10,000 units
- Micro Lot: 1,000 units
- Nano Lot: 100 units (offered by few brokers)
💵 Lot Size vs Pip Value
| Lot Size | Volume | Pip Value (USD) |
|---|---|---|
| 1.00 | Standard (100,000) | $10 |
| 0.10 | Mini (10,000) | $1 |
| 0.01 | Micro (1,000) | $0.10 |
📌 Why Lot Size Matters
- Defines how much capital you’re risking
- Impacts the pip value of your trade
- Helps in applying proper risk management
⚠️ Recommended Lot Size by Capital
| Capital | Risk % | Recommended Lot |
|---|---|---|
| $100 | 1% | 0.01 |
| $500 | 1–2% | 0.02–0.05 |
| $1,000+ | 1–2% | 0.05–0.10 |
🎯 Final Words
Choosing the correct lot size is key to managing your forex trades. Start small, stay consistent, and focus on risk-adjusted returns rather than large profits.
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