Lot Size in Trading: The Guide You Need Before You Trade

If you're just starting out in Forex or crypto trading, lot size is one of those concepts that sounds complicated but is super important. Basically, it's the amount of assets you put into each trade. Choose poorly and your account disappears. Choose wisely and you manage risk like a professional.

The 4 types of lots that exist

Standard lot: 100,000 units It's the giant. If you trade EUR/USD, you put in 100,000 euros. Only for traders with large accounts or veterans. A movement of 1 pip = $10 in profit or loss.

Mini lot: 10,000 units The middle option. Risk and reward 10 times lower than the standard. Ideal if you don't want to sleep badly.

Microlot: 1,000 units Perfect for beginners. One pip = just $0.1. You can practice without breaking the account.

Nanolote: 100 units The minimum. Generally in demo accounts or to experiment without real risk.

The golden rule: 1-2% risk

Take your total capital and never risk more than 1-2% on a single trade. If you have $1,000, a maximum of $10-20 per trade. It's the difference between trading for 5 years or going bankrupt in 5 months.

Real example with numbers

You have $1,000. You want to trade gold (XAU/USD) with 0.1 lot (10 ounces) at leverage 1:100.

• Gold is at $1,900/ounce → your position is worth $19,000
• But you only need $190 of your capital thanks to leverage
• If it rises $5, you gain $50
• If it falls $5, you lose $50

See? You control $19,000 with just $190. That's how leverage works.

How to choose your size

1. Small account → starts with micro or nano
2. Trading scalping → small lots, many trades
3. Long term → larger batches but with caution
4. Beginner → microlot until you master trading psychology

The key is simple: the lot size determines how much you earn or lose. Choose one that is too large and a losing streak will wipe out your account. Choose one that is too small and trading becomes a video game without excitement.

You start small, gain experience, go up gradually. That's all.