Lots: standard, mini and micro
How the chart shows lot size before any trade is placed
The chart on the screen shows EUR/USD at 1.0850. That price is for one euro. A standard lot controls 100,000 euros. The chart does not label the lot size. The lot size is chosen on the order ticket, not on the chart itself. But the chart tells you how far price moves, and that distance becomes money only after the lot size is set.
A mini lot controls 10,000 euros, a tenth of a standard lot. A micro lot controls 1,000 euros, a hundredth. On the same chart, the same 20-pip move happens. The chart looks identical. The peso result is not. This is why two people watching the same screen can see very different gains or losses from the same price change.
The chart also shows the spread, the small gap between the buy price and the sell price. That gap is charged per lot. On a standard lot, the spread costs more in peso terms than on a micro lot. So the chart gives two numbers that depend on lot size: the pip distance and the spread. Neither is a peso amount until the lot size is fixed.
Why the deposit sets a ceiling on lot size, not the chart
A deposit of ₱500 is the money in the account. The chart may show a strong trend, but the deposit decides how much of that trend can be traded. Each lot size has a pip value. On EUR/USD around 1.0850, one pip on a standard lot is about ₱10.00. On a mini lot it is about ₱1.00. On a micro lot it is about ₱0.10. These pip values are not fixed forever. They shift when the exchange rate between the peso and the dollar shifts, and brokers may round them.
The deposit does not change the pip value. It changes how many pips the account can absorb before the money runs out. On a ₱500 deposit, a standard lot turns a 20-pip move into a ₱200 change. That is 40 per cent of the deposit from one small move. A mini lot turns the same 20 pips into ₱20, which is 4 per cent. A micro lot turns it into ₱2, which is 0.4 per cent.
The chart cannot warn you when the deposit is too small for the lot size. Only the arithmetic can. If the stop loss is 20 pips away and the limit is ₱20, then the pip value must be ₱1.00. That points to a mini lot. If the limit is ₱2, that points to a micro lot. The chart shows where price might go. The deposit and the pip value show whether the account can survive the trip.
What changes when the lot size changes on the same chart
On the same EUR/USD chart at 1.0850, a move of 15 pips is 15 pips for everyone. On a standard lot, 15 pips × ₱10.00 = ₱150.00. On a mini lot, 15 pips × ₱1.00 = ₱15.00. On a micro lot, 15 pips × ₱0.10 = ₱1.50. The chart does not change. The lot size changes the peso result.
The same multiplication works for any distance. If the chart shows a 30-pip move against the position, a standard lot changes the account by ₱300.00. That is more than half of a ₱500 deposit. A mini lot changes it by ₱30.00. A micro lot changes it by ₱3.00. The direction of the move matters, but the lot size decides the size of the peso change.
Costs also scale with lot size. The spread, and any commission, are charged per lot. A standard lot pays more per pip in costs than a micro lot. The broker may round the exchange rate, so the pip value in pesos can differ slightly from the figures above. These figures vary between brokers. The chart shows the opportunity. The lot size decides what that opportunity costs to take.
One pip on three lot sizes with a ₱500 deposit
| Step | Amount | Note |
|---|---|---|
| Standard lot (1.00) | ₱10.00 per pip | One pip on one standard lot is 10 units of the quote currency; at 1.0850 this is about ₱10.00. |
| Mini lot (0.10) | ₱1.00 per pip | A mini lot is a tenth of a standard lot, so the pip value is also a tenth: ₱10.00 ÷ 10. |
| Micro lot (0.01) | ₱0.10 per pip | A micro lot is a hundredth of a standard lot, so the pip value is also a hundredth: ₱10.00 ÷ 100. |
| Deposit | ₱500 | The money in the account before any trade is opened. |
| Risk step: 20 pips on 1.00 lot | ₱200 | 20 pips × ₱10.00 per pip. |
| Risk step: 20 pips on 0.10 lot | ₱20 | 20 pips × ₱1.00 per pip. |
| Risk step: 20 pips on 0.01 lot | ₱2 | 20 pips × ₱0.10 per pip. |
The broker may round the exchange rate, charge a spread or commission on top, and quote a slightly different pip value. These figures vary between brokers.
Doing it once, step by step
These steps show how to read a chart, pick a lot size from the deposit, and check the pip value before placing any trade.
- 01
Open the chart and note the price
Look at the EUR/USD chart and find the current price, around 1.0850. This is the price for one euro in dollars. The chart shows the price movement, not the lot size. Write down the price so you can compare it with the order ticket later.
- 02
Find the pip distance on the chart
Measure the distance between the entry price and the stop loss in pips. For example, the chart might show a 20-pip gap. This distance is the same for every lot size. It is the number of pips that will be multiplied by the pip value.
- 03
Write down the deposit and the risk limit
The deposit is ₱500. Decide the maximum peso amount that can be lost on this trade, such as ₱20. This is a choice, not a chart signal. The limit must be smaller than the deposit so the account can survive other trades.
- 04
Calculate the pip value needed
Divide the risk limit by the pip distance. If ₱20 is the limit and the stop is 20 pips away, the pip value must be ₱1.00. That figure tells you which lot size fits the plan. Do the division before looking at any profit target.
- 05
Match the pip value to a lot size
On EUR/USD around 1.0850, a mini lot has a pip value of about ₱1.00. A micro lot is about ₱0.10. A standard lot is about ₱10.00. Choose the lot size whose pip value is closest to the number from the previous step.
- 06
Check the order ticket before sending
The order ticket shows the lot size and the pip value in pesos. Confirm that the pip value matches your calculation. The broker may round the exchange rate, so the figure can differ slightly. If it does, adjust the lot size until the pip value fits the risk limit.
The mistake most people make here
The common mistake is to choose a lot size by how much profit looks attractive, without first checking what one pip costs on that size. On a ₱500 deposit, a standard lot turns a 20-pip move into a ₱200 change, which is a large part of the account. A better habit is to decide the peso amount that can be lost on the trade, then work backwards to the lot size using the pip value. For example, if ₱20 is the limit, a 20-pip stop points to a mini lot, not a standard lot.Check yourself
EUR/USD is around 1.0850. One pip on a standard lot is about ₱10.00. What is one pip worth on 0.10 lots?
0.10 is one tenth of a standard lot, so one pip is about ₱10.00 ÷ 10 = ₱1.00.
Using the same pip values, how much is 15 pips on 0.01 lots?
One pip on 0.01 lots is about ₱0.10. 15 pips × ₱0.10 = ₱1.50.
A deposit is ₱500. A trade on 1.00 lot moves 30 pips against the position. What is the change in peso terms, before any costs?
One pip is about ₱10.00. 30 pips × ₱10.00 = ₱300.00.
Questions that come up next
How much is one pip on 0.01 lots?
One pip on a micro lot, which is 0.01 lots, is about ₱0.10. This comes from dividing the standard pip value of ₱10.00 by 100. So a 20-pip move on a micro lot is about ₱2.00. The exact figure varies between brokers because of rounding and the peso exchange rate.
Why does the same chart give different peso amounts?
The chart shows price movement in pips, not in peso. The pip distance is the same for everyone watching EUR/USD. The peso amount depends on the lot size chosen on the order ticket. A standard lot makes each pip worth about ₱10.00, a mini lot about ₱1.00, and a micro lot about ₱0.10.
How do I work out the lot size from my loss limit?
First decide the peso amount you are willing to lose on the trade. Then divide that amount by the number of pips in your stop loss. That gives the pip value you need. Match that pip value to a lot size. For example, ₱20 divided by 20 pips is ₱1.00 per pip, which points to a mini lot.
Does a bigger lot size always mean a better trade?
No. A bigger lot size increases both gains and losses for the same price move. On a ₱500 deposit, a standard lot turns a 20-pip move into a ₱200 change, which is 40 per cent of the account. A mini lot turns the same move into ₱20, which is 4 per cent. The lot size should fit the deposit and the stop loss, not the profit that looks attractive.
Can I change the lot size after the trade is open?
No. The lot size is set on the order ticket before the trade is placed. Once the position is open, the pip value is fixed for that trade. You can close the trade or open a new one with a different lot size, but you cannot resize the existing position. This is why the lot size decision must be made before clicking buy or sell.
What costs are added on top of the pip value?
The broker may charge a spread, which is the gap between the buy and sell price. Some brokers also charge a commission. These costs are charged per lot, so a standard lot costs more in peso terms than a micro lot. The pip value figures here are before any costs. The exact costs vary between brokers.
The words used on this page
- Lot
- The amount of the instrument one trade controls. A standard lot is 100,000 units, a mini lot is 10,000 units, and a micro lot is 1,000 units. The lot size is chosen on the order ticket, not on the chart.
- Pip
- The smallest common price move on a currency pair. For EUR/USD, one pip is 0.0001. The chart shows price in pips, but the peso value of one pip depends on the lot size.
- Pip value
- The peso amount that one pip is worth for a given lot size. On EUR/USD around 1.0850, one pip is about ₱10.00 on a standard lot, ₱1.00 on a mini lot, and ₱0.10 on a micro lot. This value varies between brokers and with the peso exchange rate.
- Deposit
- The money in the trading account. It does not change the pip value. It sets a ceiling on how many pips the account can absorb before the money runs out. A ₱500 deposit is small, so a standard lot can use a large part of it in a short move.
- Spread
- The small gap between the buy price and the sell price on the chart. It is charged per lot, so the peso cost is higher on a standard lot than on a micro lot. The spread is separate from the pip value and adds to the cost of the trade.
- Stop loss
- An order that closes the trade at a chosen price to limit the loss. The distance from the entry price to the stop loss, measured in pips, helps work out the lot size. If the stop is 20 pips away and the limit is ₱20, the pip value must be ₱1.00, which points to a mini lot.
What to take away
- A lot is how much of the instrument one trade controls: standard 100,000 units, mini 10,000, micro 1,000.
- On EUR/USD around 1.0850, one pip is about ₱10.00 on a standard lot, ₱1.00 on a mini lot, and ₱0.10 on a micro lot.
- The chart shows pips, but the peso result depends on the lot size chosen on the order ticket.
- Work backwards from the peso amount you can lose and the stop-loss distance to find the lot size that fits your deposit.