Understanding Lots in Trading
A lot is a standardized unit of measurement used to express the size of a trade in the financial markets, particularly in forex, commodities, indices, and other CFD products.
Understanding what a lot is and how it affects your trade size is essential for proper risk management and order placement.
Types of Lots
In trading, there are three commonly used lot sizes:
Lot Type | Volume | Value in Forex (for USD-based pairs) |
Standard Lot | 1.00 | 100,000 units of the base currency |
Mini Lot | 0.10 | 10,000 units |
Micro Lot | 0.01 | 1,000 units |
So, when you place a trade of 1.00 lot in EUR/USD, for example, you are buying or selling 100,000 EUR worth of that currency pair.
Examples Beyond Forex
Because commodities, indices, and metals use contract sizes instead of base/quote currencies, the value of one lot is defined by each product’s specification.
1. Gold (XAU/USD)
Contract size: 100 ounces of gold per 1.00 lot
Example:
1.00 lot = 100 ounces
0.10 lot = 10 ounces
0.01 lot = 1 ounce
If gold moves $1 per ounce, a 0.10 lot position changes $10 in value (10 ounces × $1).
2. Crude oil (USWTI)
Contract size: 100 barrels per 1.00 lot
Example:
1.00 lot = 100 barrels
0.10 lot = 10 barrels
0.01 lot = 1 barrel
If oil rises $0.50 per barrel, a 0.10 lot trade gains or loses $5.
Always check “Contract Specifications” in MT4/MT5 for the exact contract size and tick value of each instrument.
Why Are Lots Important?
Lots determine the trade volume, which in turn affects:
The pip value (how much a 1-pip move is worth)
Margin required to open the position
Profit or loss outcomes based on price movement
Example in Forex:
1 pip move on 1 standard lot = $10
1 pip move on 0.10 lot = $1
1 pip move on 0.01 lot = $0.10
How to Choose the Right Lot Size
Choosing your lot size should depend on:
Account balance
Risk tolerance
Leverage used
Stop-loss size and trading strategy
Tip: Many traders use position size calculators to determine the optimal lot size per trade based on their risk management rules.
Where to Set Lot Size
When opening a trade in MetaTrader 4 or 5 (MT4/MT5):
Open the New Order window.
Look for the Volume field.
Input the desired lot size (e.g., 0.01, 0.10, 1.00).
Trading Lots with Blueberry
At Blueberry, you can trade micro lots (as low as 0.01) on most instruments. This gives you flexibility to control your exposure and fine-tune your trading strategies.
If you'd like help calculating lot sizes or understanding your exposure per trade, feel free to reach out to our support team or check out our lot size guide.
Maximum Lot Size
Each instrument also has a maximum trade size, which varies by product.
To check it, simply open your MT4 or MT5 platform and follow these steps:
In the Market Watch window, right-click the symbol you want to trade.
Choose Specification.
Look for Contract Size and Max Volume. This shows the largest number of lots you can trade in a single order for that instrument.