Forex lot sizes

How it works

Retail brokers commonly describe positions using standard, mini or micro lots, although exact contract specifications depend on the product and provider. A larger lot creates larger currency exposure for the same price move.

What to check

Read the instrument's contract specification instead of relying only on labels such as mini or micro. Check the units represented by one lot and the minimum increment the platform allows.

• Check units per lot
• Check minimum trade size
• Relate lot size to notional exposure

Limits and risks

Position size directly affects gains, losses, margin and pip value. A small-looking number of lots can still represent a large notional exposure when leverage is available.