Pips, Lots and Contract Sizes
A 1-minute lesson from the MarketPro academy, one of 24 in forex basics.
A pip is the standard unit of price movement in a currency pair. For most pairs it is the fourth decimal place: if EUR/USD moves from 1.0850 to 1.0851, it moved one pip.
What is a pip?
A pip is the standard unit of price movement in a currency pair. For most pairs it is the fourth decimal place: if EUR/USD moves from 1.0850 to 1.0851, it moved one pip. For JPY pairs, a pip is the second decimal place: USD/JPY moving from 155.20 to 155.21 is one pip. Many brokers also quote a fifth (or third for JPY) decimal called a pipette, which is a tenth of a pip.
What is a lot?
A lot is the standardised trade size. One standard lot is 100,000 units of the base currency. A mini lot is 10,000 units (0.1 lots) and a micro lot is 1,000 units (0.01 lots).
Finish this lesson in the MarketPro app
5 more sections of Pips, Lots and Contract Sizes, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.
Scan with your phone camera to install MarketPro and open this lesson.
Free account, no card. The academy has no paywall inside the app.
Not investment advice. Past performance is not indicative of future results.
Run the numbers while this is fresh
The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Pip value calculator, Position size calculator, Margin calculator, Leverage calculator.
The whole academy is free in the app
All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.
Not investment advice. Past performance is not indicative of future results.