WickCheck / Trading school / Lot size
Lot sizeBeginner
How big a position is. One standard lot in forex is 100,000 units of the base currency.
What it means
A mini lot is 10,000 units and a micro lot is 1,000. On EUR/USD one standard lot is worth about $10 per pip. Your lot size should come from your risk per trade and stop distance, not from a feeling.
How to spot it
- Lot size = money at risk ÷ (stop distance in pips × pip value).
Common mistakes
- Using the same lot size for every trade no matter how wide the stop is.
Related terms
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Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.