Lots: standard, mini and micro
What you learn in 3 minutesThis lesson shows how the size of one trade changes the value of a single pip, using EUR/USD around 1.0850 and a deposit of ₱500. A lot is simply the amount of the instrument one trade controls: a standard lot is 100,000 units, a mini lot is 10,000 units, and a micro lot is 1,000 units. By the end, the reader can see why the same price move produces very different peso amounts on each lot size.
One pip on three lot sizes with a ₱500 deposit
| Step | Amount | Note |
|---|---|---|
| Standard lot (1.00) | ₱10.00 per pip | One pip on one standard lot is 10 units of the quote currency; at 1.0850 this is about ₱10.00. |
| Mini lot (0.10) | ₱1.00 per pip | A mini lot is a tenth of a standard lot, so the pip value is also a tenth: ₱10.00 ÷ 10. |
| Micro lot (0.01) | ₱0.10 per pip | A micro lot is a hundredth of a standard lot, so the pip value is also a hundredth: ₱10.00 ÷ 100. |
| Deposit | ₱500 | The money in the account before any trade is opened. |
| Risk step: 20 pips on 1.00 lot | ₱200 | 20 pips × ₱10.00 per pip. |
| Risk step: 20 pips on 0.10 lot | ₱20 | 20 pips × ₱1.00 per pip. |
| Risk step: 20 pips on 0.01 lot | ₱2 | 20 pips × ₱0.10 per pip. |
The broker may round the exchange rate, charge a spread or commission on top, and quote a slightly different pip value. These figures vary between brokers.
The mistake people make here
The common mistake is to choose a lot size by how much profit looks attractive, without first checking what one pip costs on that size. On a ₱500 deposit, a standard lot turns a 20-pip move into a ₱200 change, which is a large part of the account. A better habit is to decide the peso amount that can be lost on the trade, then work backwards to the lot size using the pip value. For example, if ₱20 is the limit, a 20-pip stop points to a mini lot, not a standard lot.Check yourself
EUR/USD is around 1.0850. One pip on a standard lot is about ₱10.00. What is one pip worth on 0.10 lots?
0.10 is one tenth of a standard lot, so one pip is about ₱10.00 ÷ 10 = ₱1.00.
Using the same pip values, how much is 15 pips on 0.01 lots?
One pip on 0.01 lots is about ₱0.10. 15 pips × ₱0.10 = ₱1.50.
A deposit is ₱500. A trade on 1.00 lot moves 30 pips against the position. What is the change in peso terms, before any costs?
One pip is about ₱10.00. 30 pips × ₱10.00 = ₱300.00.