Lot size refers to the size of the trade you’re making in units of the base currency.

We have standard lot sizes, mini lot sizes, and micro lot sizes.

A standard lot size is 100,000 units of the base currency in a forex trade.

A mini lot size is 10,000 units of the base currency in a forex trade.

A micro lot size is 1,000 units of the base currency in a forex trade.

Once you start trading, you will use a simpler system. A standard lot size is referred to trading at a volume of 1. That equals \$10 per pip.

A mini lot size is referred to trading at a volume of 0.10. That equals \$1 per pip.

A micro lot size is referred to trading at a volume of 0.01. That equals \$0.10 per pip.

With advances in technology, most brokers allow you to place trades with custom lot sizes.

Example 1: If you are trading at a volume of 0.75 you would move the decimal one place to the right to get the price per pip. The price per pip would be \$7.50.

Example 2: If you are trading at a volume of 0.43 you would move the decimal one place to the right to get the price per pip. The price per pip would be \$4.30.

Now you know the basics of lot sizes in forex and how to calculate the price per pip.