Lots: standard, mini and micro
What you learn in 3 minutesThis lesson shows what a lot is and what each size costs you per pip. A lot is simply the amount of EUR/USD one trade controls. Standard is 100,000 units, mini is 10,000, micro is 1,000. On a ₦-funded account, that choice sets how fast your money moves.
Pip cost on a $500 deposit at three lot sizes
| Step | Amount | Note |
|---|---|---|
| Deposit | $500 | the starting balance used for every row below |
| Naira value of the deposit | ₦750,000 | $500 x ₦1,500 per dollar; the rate your bank or broker applies will differ |
| Standard lot | 100,000 units | one pip is 100,000 x 0.0001 = 10 units of the quote currency, so $10 |
| Pip cost, standard | ₦15,000 | $10 x ₦1,500 |
| Mini lot | 10,000 units | one tenth of standard, so one pip is $1 |
| Pip cost, mini | ₦1,500 | $1 x ₦1,500 |
| Micro lot | 1,000 units | one hundredth of standard, so one pip is $0.10 |
| Pip cost, micro | ₦150 | $0.10 x ₦1,500 |
| Risk step, standard | ₦150,000 for a 10 pip move | 10 x ₦15,000, which is 20 per cent of the deposit |
| Risk step, mini | ₦15,000 for a 10 pip move | 10 x ₦1,500, which is 2 per cent of the deposit |
| Risk step, micro | ₦1,500 for a 10 pip move | 10 x ₦150, which is 0.2 per cent of the deposit |
The broker may round the pip value, add a spread, and charge a commission or swap. The naira rate used to convert your dollars also varies between providers and changes daily. Check the contract specification for the exact figure.
The mistake people make here
The common mistake is to open a standard lot on a small deposit because the position looks more serious. On the numbers above, a 10 pip move against a standard lot costs ₦150,000, which is a fifth of a $500 account. That is not a strategy problem, it is a sizing problem. Start with micro lots, where the same 10 pip move costs ₦1,500, and only move up when the arithmetic still leaves room for many more losses.Check yourself
At EUR/USD 1.0850, what is one pip worth in naira on a mini lot, using ₦1,500 per dollar?
A mini lot is 10,000 units. One pip is 10,000 x 0.0001 = 1 unit of the quote currency, so $1. At ₦1,500 per dollar that is ₦1,500.
A micro lot moves 25 pips against you. What is the loss in naira?
One pip on a micro lot is ₦150. 25 x ₦150 = ₦3,750.
With a $500 deposit, what percentage of the account is a 40 pip loss on a standard lot?
One pip on a standard lot is ₦15,000. 40 x ₦15,000 = ₦600,000. The deposit is ₦750,000, so the loss is ₦600,000 / ₦750,000 = 0.8, or 80 per cent.