Key fact: A standard lot is 100,000 units of the base currency, a mini lot is 10,000, and a micro lot is 1,000. Pip value scales with lot size: about USD 10, USD 1, and USD 0.10 per pip respectively on EUR/USD.
How lot size works
Lot size is the quantity of units in a forex position. A standard lot is 100,000 units of the base currency, a mini lot is 10,000, a micro lot is 1,000, and a nano lot is 100. Lot size sets your pip value, and pip value is what converts a price move into a dollar gain or loss. Pick the lot, and you have picked your risk per pip.
Worked example
On EUR/USD, one pip is worth about $10 on a standard lot, $1 on a mini lot, and $0.10 on a micro lot. If your stop is 25 pips away and you trade one mini lot, you risk about $25. To keep that loss at one percent of equity, the account needs roughly $2,500. Change the lot, and the required account size changes with it. This is the whole of position sizing in one calculation.
Choosing a lot size on Volity
Volity supports micro and mini lots, so a $50 Markets account can trade real positions without breaking the one percent rule. Start at micro size while learning the platform and your strategy, then scale lots only after the approach is profitable across a meaningful sample of live trades.
Why it matters
Most blown accounts trade too large for their balance, not too often. Lot size is the dial that prevents that. Set risk first, then solve for the lot, never the reverse. Read together with position sizing and leverage.
Read the full breakdown in our forex trading guide.
