Pips lots and position size
A pip is the smallest standard price move in forex, and a lot is the size of your trade — together they decide how much each price move is worth in real money.
What is a pip
For most pairs a pip is the fourth decimal place: EUR/USD moving from 1.0850 to 1.0851 is one pip. For yen pairs (e.g. USD/JPY) a pip is the second decimal place.
Lots: standard, mini, micro
- Standard lot = 100,000 units → about $10 per pip.
- Mini lot = 10,000 units → about $1 per pip.
- Micro lot = 1,000 units → about $0.10 per pip.
Pip value in money
Profit or loss = pips × pip value × lot size. A 20-pip win on one mini lot is roughly $20. This is why lot size — not just being right — controls how much you make or lose.
Sizing with the FxErvin rule
Keep positions safe with our rule: a maximum of 0.08 lots per $1,000 of balance. Full detail in position sizing and capital management.