What is Micro Lot?
A micro lot is 1,000 units of the base currency in forex, equal to one-hundredth of a standard lot. On EUR/USD, a micro lot moves approximately $0.10 per pip. Micro lots are essential for traders testing strategies or trading small accounts because they allow risk sizing as small as $1-5 per trade. Most prop firms support micro-lot trading by default.
Key takeaways
1,000 units of base currency in forex.
A micro lot is 1,000 units of the base currency in forex, equal to one-hundredth of a standard lot.
On EUR/USD, a micro lot moves approximately $0.10 per pip.
Micro lots are essential for traders testing strategies or trading small accounts because they allow risk sizing as small as $1-5 per trade.
Micro Lot vs. Lot Size
Two terms that frequently get conflated. Here's how they actually differ.
Micro LotMarket Mechanics · PRO
Lot SizeMarket Mechanics · PRO
1,000 units of base currency in forex.
The standard unit of trading volume in forex.
Frequently asked questions
What is Micro Lot?
A micro lot is 1,000 units of the base currency in forex, equal to one-hundredth of a standard lot. On EUR/USD, a micro lot moves approximately $0.10 per pip. Micro lots are essential for traders testing strategies or trading small accounts because they allow risk sizing as small as $1-5 per trade.
Why does Micro Lot matter for prop firm traders?
Micro Lot is one of the building blocks of how markets and trading actually work. Without a clean mental model of it, position sizing, risk calculations, and rule-compliance all break down.
How is Micro Lot different from Lot Size?
Micro Lot and Lot Size are commonly confused. Micro Lot: 1,000 units of base currency in forex. Lot Size, by contrast: The standard unit of trading volume in forex.
What should traders watch out for with Micro Lot?
Micro lots are essential for traders testing strategies or trading small accounts because they allow risk sizing as small as $1-5 per trade. Most prop firms support micro-lot trading by default.