Lots: standard, mini and micro
We use EUR/USD near 1.0850 and a deposit of $500. Every naira figure below is worked out from those numbers, so you can check the arithmetic yourself.
How a lot size sets your cost per pip before you open the trade
A lot is the number of units of EUR/USD that one trade controls. The three common sizes are standard, mini and micro. Standard controls 100,000 units. Mini controls 10,000 units. Micro controls 1,000 units. The size you pick sets the money value of every pip before you click buy or sell.
At EUR/USD near 1.0850, one pip is a move of 0.0001 in the price. On a standard lot, 100,000 units x 0.0001 = 10 units of the quote currency, which is $10. On a mini lot, 10,000 x 0.0001 = $1. On a micro lot, 1,000 x 0.0001 = $0.10. Those are the raw pip values in dollars.
To get naira, multiply by the exchange rate you use to fund the account. The page uses ₦1,500 per dollar. So a standard lot costs ₦15,000 per pip, a mini lot costs ₦1,500 per pip, and a micro lot costs ₦150 per pip. The arithmetic is: units x 0.0001 x naira rate. If your provider gives a different naira rate, the naira figures change, but the method stays the same.
What the naira cost per pip means for a deposit of $500
A $500 deposit is ₦750,000 at ₦1,500 per dollar. That is the money in the account. The lot size decides how many pips of movement use up that money. On a micro lot, each pip costs ₦150. On a mini lot, each pip costs ₦1,500. On a standard lot, each pip costs ₦15,000.
Divide the deposit by the cost per pip to see how many pips you can absorb. On a micro lot, ₦750,000 / ₦150 = 5,000 pips. On a mini lot, ₦750,000 / ₦1,500 = 500 pips. On a standard lot, ₦750,000 / ₦15,000 = 50 pips. A standard lot leaves only 50 pips of room before the deposit is gone, before any broker charges.
This is why the same market move feels different at each size. A 10 pip move against a standard lot costs ₦150,000, which is a fifth of the ₦750,000 deposit. The same 10 pip move against a micro lot costs ₦1,500, which is 0.2 per cent of the deposit. The market did the same thing. The lot size changed the cost.
Why the naira figures are a guide, not a fixed price
The pip values above assume no other costs. In practice, the broker adds a spread, and may charge a commission or a swap. The spread means you start each trade slightly behind. A commission is a separate fee per trade. A swap is a daily charge for holding a position overnight. These vary between brokers, so the exact naira cost of one pip is not the same everywhere.
The naira rate also moves. The page uses ₦1,500 per dollar, but providers give different rates and those rates change daily. If the rate is higher, your naira pip cost is higher. If it is lower, your naira pip cost is lower. Check the rate your provider uses before you work out your own numbers.
The regulator for this market in Nigeria is SEC Nigeria. Rules on leverage, margin and how client money is held can change, and they differ by broker. Do not assume one broker's terms apply to another. Read the contract specification for the instrument you are trading. It lists the pip size, the contract size and the charges that apply to your account.
Pip cost on a $500 deposit at three lot sizes
| Step | Amount | Note |
|---|---|---|
| Deposit | $500 | the starting balance used for every row below |
| Naira value of the deposit | ₦750,000 | $500 x ₦1,500 per dollar; the rate your bank or broker applies will differ |
| Standard lot | 100,000 units | one pip is 100,000 x 0.0001 = 10 units of the quote currency, so $10 |
| Pip cost, standard | ₦15,000 | $10 x ₦1,500 |
| Mini lot | 10,000 units | one tenth of standard, so one pip is $1 |
| Pip cost, mini | ₦1,500 | $1 x ₦1,500 |
| Micro lot | 1,000 units | one hundredth of standard, so one pip is $0.10 |
| Pip cost, micro | ₦150 | $0.10 x ₦1,500 |
| Risk step, standard | ₦150,000 for a 10 pip move | 10 x ₦15,000, which is 20 per cent of the deposit |
| Risk step, mini | ₦15,000 for a 10 pip move | 10 x ₦1,500, which is 2 per cent of the deposit |
| Risk step, micro | ₦1,500 for a 10 pip move | 10 x ₦150, which is 0.2 per cent of the deposit |
The broker may round the pip value, add a spread, and charge a commission or swap. The naira rate used to convert your dollars also varies between providers and changes daily. Check the contract specification for the exact figure.
Doing it once, step by step
Work through these steps once with a pen and paper, using your own deposit and the naira rate your provider gives you. The aim is to know your cost per pip before you open any trade.
- 01
Write down your deposit in naira
Start with the amount you have funded, converted to naira at the rate your provider used. For example, $500 at ₦1,500 per dollar is ₦750,000. This is the money that can be lost.
- 02
Choose one lot size and find its pip cost
Use the formula units x 0.0001 x naira rate. For a micro lot: 1,000 x 0.0001 x ₦1,500 = ₦150 per pip. For a mini lot: 10,000 x 0.0001 x ₦1,500 = ₦1,500 per pip. For a standard lot: 100,000 x 0.0001 x ₦1,500 = ₦15,000 per pip.
- 03
Divide your deposit by that pip cost
This tells you how many pips the deposit can absorb before it is gone, ignoring other charges. On ₦750,000: a micro lot gives 5,000 pips, a mini lot gives 500 pips, a standard lot gives 50 pips. Write the number down.
- 04
Check the number against a normal market day
EUR/USD can move 50 to 100 pips in a day, and sometimes more. If your deposit only covers 50 pips on a standard lot, one ordinary day can take most of it. A smaller lot gives you more room for the same market move.
- 05
Add the broker's charges to the figure
Look up the spread, commission and swap for your account. Add them to your pip cost. The total is what one pip actually costs you. If you cannot find these figures, ask the broker before you trade.
- 06
Pick the largest lot that still leaves room for many losses
If a 40 pip loss on a standard lot is 80 per cent of the deposit, that size is too large for this account. Move down to mini or micro until the same loss is a small part of the deposit. Then you can survive a run of losing trades while you learn.
The mistake most people make here
The common mistake is to open a standard lot on a small deposit because the position looks more serious. On the numbers above, a 10 pip move against a standard lot costs ₦150,000, which is a fifth of a $500 account. That is not a strategy problem, it is a sizing problem. Start with micro lots, where the same 10 pip move costs ₦1,500, and only move up when the arithmetic still leaves room for many more losses.Check yourself
At EUR/USD 1.0850, what is one pip worth in naira on a mini lot, using ₦1,500 per dollar?
A mini lot is 10,000 units. One pip is 10,000 x 0.0001 = 1 unit of the quote currency, so $1. At ₦1,500 per dollar that is ₦1,500.
A micro lot moves 25 pips against you. What is the loss in naira?
One pip on a micro lot is ₦150. 25 x ₦150 = ₦3,750.
With a $500 deposit, what percentage of the account is a 40 pip loss on a standard lot?
One pip on a standard lot is ₦15,000. 40 x ₦15,000 = ₦600,000. The deposit is ₦750,000, so the loss is ₦600,000 / ₦750,000 = 0.8, or 80 per cent.
Questions that come up next
How much is one pip on a micro lot in naira?
A micro lot controls 1,000 units of EUR/USD. One pip is 1,000 x 0.0001 = 0.10 units of the quote currency, so $0.10. At ₦1,500 per dollar that is ₦150 per pip. The figure changes if your provider gives a different naira rate.
What happens if I open a standard lot on a small deposit?
A standard lot costs ₦15,000 per pip at ₦1,500 per dollar. A $500 deposit is ₦750,000, so 50 pips of movement against you uses the whole deposit. That is before spread, commission or swap. The size is the problem, not the market call.
Can I change lot size after I open a trade?
No. The size is fixed when the trade opens. You can close part of the position, which cuts the units still exposed, but you cannot shrink the original lot. Choose the size before you click buy or sell.
Does a bigger lot mean a bigger profit?
It scales both directions by the same amount. A standard lot that gains 10 pips gains about ₦150,000, and one that loses 10 pips loses about ₦150,000. There is no setting that raises only the winning side. Profit and loss move together with the size.
How do I pick a lot size that fits my deposit?
Divide your deposit by the naira cost per pip for that size. On a $500 deposit, a micro lot gives 5,000 pips of room, a mini lot 500 pips, a standard lot 50 pips. Most beginners need room for many losses in a row. A size that leaves only a few dozen pips is too large for the deposit.
Is the pip value the same at every broker?
No. The broker may round the pip value, add a spread, and charge a commission or swap. The naira rate used to convert your dollars also varies between providers and changes daily. Check the contract specification for the exact figure.
The words used on this page
- Lot
- The number of units of EUR/USD that one trade controls. Standard is 100,000 units, mini is 10,000, micro is 1,000. The size sets the naira value of each pip before the trade opens.
- Pip
- A move of 0.0001 in the EUR/USD price. At 1.0850, one pip up is 1.0851 and one pip down is 1.0849. Its naira cost depends on the lot size.
- Spread
- The gap between the buying price and the selling price a broker quotes. It means each trade starts slightly behind. The size of the gap varies between brokers.
- Commission
- A separate fee a broker may charge for opening or closing a trade. It is not part of the pip value. Whether it applies, and how much, varies between brokers.
- Swap
- A daily charge for holding a position overnight. It is added to or taken from the account each day the trade stays open. The rate varies between brokers.
What to take away
- A lot is how much EUR/USD one trade controls: 100,000 units standard, 10,000 mini, 1,000 micro.
- At ₦1,500 per dollar, one pip costs about ₦15,000 standard, ₦1,500 mini and ₦150 micro.
- Divide the deposit by the cost per pip to see the room you have: a $500 deposit leaves 50 pips on a standard lot, 500 on a mini, 5,000 on a micro.
- Spread, commission, swap and the naira rate all vary, so treat every naira figure as a guide and check the contract specification.