What lot sizes actually mean

You've learned what a pip is. Now we need to talk about what a pip costs — because that number changes depending on how much currency you're controlling. That "how much" is called your lot size.

The three standard lot sizes

Forex brokers offer three main position sizes:

• Standard lot: 100,000 units of the base currency
• Mini lot: 10,000 units
• Micro lot: 1,000 units

On EUR/USD, the math is clean:

• 1 standard lot = $10 per pip
• 1 mini lot = $1 per pip
• 1 micro lot = $0.10 per pip

If EUR/USD moves 30 pips against you and you're trading one standard lot, you just lost $300. If you're on a micro lot, that same move costs you $3.

Filipino math: what does this actually mean?

Let's say you're testing a breakout strategy. You set a 30-pip stop-loss — tight, but reasonable for intraday price action.

• On a standard lot: 30 pips × $10 = $300 ≈ ₱17,000
• On a mini lot: 30 pips × $1 = $30 ≈ ₱1,700
• On a micro lot: 30 pips × $0.10 = $3 ≈ ₱170

Most Filipinos starting out don't have ₱17,000 to risk on a single idea. But ₱170? That's the cost of learning without the fear.

Why beginners should start on micro lots

Trading is a skill. Skills take repetition. Repetition requires surviving your mistakes long enough to stop making them.

If you start on standard lots with a ₱50,000 account, five bad trades can cut you in half. Emotionally, that's hard to recover from. You start revenge-trading. You chase. You stop following your plan.

Start on micro lots. Take 50 trades. Watch what happens when you move your stop too close, when you enter too early, when you ignore your checklist. The financial damage will be small. The educational value will not.

A note on other pairs

Pip value changes slightly depending on the currency pair and your account currency. On USD/JPY, GBP/USD, or crosses like EUR/GBP, the math is different. Most brokers show pip value in real time on the trade ticket. Check it before you click.

The real question

Lot size is not about ego. It's about how long you stay in the game.

If you're still learning to read price action, manage emotion, and follow a plan, there is zero reason to trade anything larger than a micro lot. Zero.

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