Trader Lab · Sizing
Pips and lots, how FX size is measured
A pip is a small price increment on a FX quote; a lot is a standardised notional size. Understanding both helps you read profit/loss and avoid oversized positions. Examples below are illustrative, not FxPro fee quotes.
75%+ of retail investor accounts lose money trading CFDs.
What is a pip?
On most XXX/USD pairs quoted to four decimal places, one pip is 0.0001. On many JPY pairs, one pip is 0.01. Some platforms also show fractional pips (points). Always read the quote precision on your chart.
Lots in plain language
- Standard lot, often 100,000 units of base currency
- Mini lot, often 10,000 units
- Micro lot, often 1,000 units
Contract size can differ for CFDs on indices, metals or crypto. Check the instrument specification in the platform before trading live.
Why size matters more than “being right”
A correct direction with oversized lots can still wipe an account. Many educators suggest risking only a small fraction of equity per idea, the exact fraction is a personal rule, not a promise of safety.
Practice without cash risk
Use a demo account to place 0.01 lots and watch pip value change across pairs. Then read account-type and deposit guides on this site before funding.
FAQ
Is pip value always $10 per standard lot?
No. Pip value depends on the pair, quote currency and contract size. Treat “$10” as a common USD-pair illustration, not a universal rule.
Do CFDs use lots the same way?
FX CFDs often use lot sizing; other CFD underlyings may use contracts or units. Read the symbol spec.