Lots: standard, mini and micro
What you learn in 3 minutesA lot is simply the size of one trade. It decides how much of USD/INR moves when the price moves, so it decides how much money is at stake on every pip. On a standard lot of USD/INR, one pip is ₹10. On a mini lot it is ₹1, and on a micro lot it is ₹0.10. This lesson shows how those three sizes change the risk on a ₹500 account.
Three lot sizes on a ₹500 deposit
| Step | Amount | Note |
|---|---|---|
| Standard lot | 100,000 units | The base size. One pip on USD/INR is ₹10, because 100,000 x 0.0001 = 10. |
| Mini lot | 10,000 units | One tenth of a standard lot. One pip is ₹1, because 10,000 x 0.0001 = 1. |
| Micro lot | 1,000 units | One hundredth of a standard lot. One pip is ₹0.10, because 1,000 x 0.0001 = 0.10. |
| Deposit | ₹500 | The account balance used for this example. |
| Risk step, standard lot | ₹10 per pip | A 50 pip move against the position is 50 x ₹10 = ₹500, the whole deposit. |
| Risk step, mini lot | ₹1 per pip | A 50 pip move against the position is 50 x ₹1 = ₹50, one tenth of the deposit. |
| Risk step, micro lot | ₹0.10 per pip | A 50 pip move against the position is 50 x ₹0.10 = ₹5, one hundredth of the deposit. |
The exact pip value can differ slightly between brokers because of the exchange rate used, rounding, and any commission or spread added on top. Always check the contract specification page of the platform you use.
The mistake people make here
The common mistake is to choose a lot size by what looks exciting rather than by what the deposit can absorb. A trader with ₹500 may open one standard lot because the profit per pip looks large, then a normal 50 pip move against the position wipes out the account. Instead, start from the pip value and work backwards: decide the largest loss that is acceptable in rupees, then divide it by the pip value to find the lot size. On a ₹500 deposit, a micro lot keeps a 50 pip move to about ₹5, which leaves room to learn.Check yourself
On a mini lot of USD/INR, what is the value of one pip in rupees?
A mini lot is 10,000 units. One pip is 0.0001, so 10,000 x 0.0001 = ₹1 per pip.
If a trade on a micro lot moves 30 pips in your favour, what is the gross profit before costs?
One pip on a micro lot is ₹0.10. So 30 x ₹0.10 = ₹3.
A trader with ₹500 wants the maximum loss from a 40 pip move to be ₹20. Which lot size fits?
₹20 divided by 40 pips = ₹0.50 per pip. That is five times the micro lot pip value of ₹0.10, so the size is five micro lots, or 5,000 units.