#### Lesson 7: Lot Size and Price Per Pip in Forex!

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.