Risk and performance
Lot size is the size of a trade in standardised units. In forex, one standard lot is conventionally 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000, so 0.01 lot is a micro lot. The lot size sets how much each pip is worth, and therefore how much a trade can make or lose.
Lot sizes are written as decimals of a standard lot. On a pair quoted in US dollars, such as EUR/USD, one pip is 0.0001, so a pip is worth 100,000 x 0.0001 = $10 on a standard lot.
| Lot | Written as | Units of base currency | Value of one pip |
|---|---|---|---|
| Standard | 1.00 | 100,000 | $10 |
| Mini | 0.10 | 10,000 | $1 |
| Micro | 0.01 | 1,000 | $0.10 |
Pip values differ on pairs not quoted in the account currency, and on yen pairs, where a pip is 0.01. Contract sizes are set per instrument; the specification on your account applies.
Outside currencies, a lot is defined by the instrument's contract size rather than by 100,000 units. For spot gold (XAU/USD), one lot is commonly 100 troy ounces, which makes 0.01 lot one ounce: a $1 move in the gold price is then worth $100 on one lot and $1 on 0.01 lot.
Index and other instruments have their own contract sizes. Always read the size from the instrument specification on the account before sizing a trade; the convention above is common, not universal.
Work backwards from risk. Decide how much money the trade may lose, measure the distance to the stop in pips, and divide: lot size = risk in money / (stop distance in pips x pip value per lot).
The position size calculator does this for any pair or instrument. There is no correct lot size in general - only the lot size that matches a stop and a risk amount.
Step by step
Before every trade, derive the lot size rather than reusing yesterday's.
Worked example
An illustrative calculation on a $100,000 simulated account, using the conventions above. It is not a recommendation.
Halve the stop and the same risk allows twice the size; double it and the size halves. The lot size follows from the stop, never the other way round.
Common mistakes
A fixed size with a variable stop makes the risk per trade random.
Gold, indices and other instruments have their own contract sizes.
On pairs not quoted in the account currency, the value per pip moves with the exchange rate.
Limitations
No chart concept predicts price. These are the limits worth keeping in view.
In an evaluation
There is no single published maximum lot size at GFN. In practice the daily loss limit binds long before margin does: on a $100,000 account it is $3,000 on Instant or $5,000 on 1 Step and 2 Step. Size from the stop so that a string of losses stays well inside it.
Commission is charged per lot, so larger sizes raise costs in proportion.
Trading rule
Is there a maximum lot size?
How leverage, margin and the risk limits bound position size.
Trading rule
What is the daily loss limit?
The ceiling a position size should be measured against - 3% on Instant and 5% on 1 Step and 2 Step.
Trading rule
What does trading cost?
The per-lot cost that scales with size.
Questions
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Sources
Educational content only, not investment advice or a recommendation to trade. Chart concepts describe what price has done; none of them predicts what it will do, and trading any strategy can lose money. Get Funded Now accounts are simulated and trade virtual funds. Last reviewed 22 September 2026.
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