What Is a Micro Lot in Forex
A micro lot is a lot of size in forex trading equal to 1,000 units of the base currency. It is one of the smallest standard position sizes offered by most brokers.
For example, trading one micro lot of EUR/USD means controlling 1,000 euros’ worth of exposure in that pair.
| Lot Type |
Units of Base Currency |
| Standard lot |
100,000 |
| Mini lot |
10,000 |
| Micro lot |
1,000 |
Why Traders Use Micro Lots
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Manageable exposure — useful for testing strategies or trading smaller account sizes.
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Fine-tuned position sizing — allows more precise risk control than larger lot sizes.
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Common for beginners — often used while building familiarity with order execution and market behaviour.
A Simple Pip Value Example
For most currency pairs quoted to four decimal places, one pip on a micro lot is typically worth around 0.10 units of the quote currency. This is considerably smaller than the pip value on a mini or standard lot, which is part of why micro lots are often used to keep individual price movements proportionally smaller.
Sizing Up from Micro Lots Gradually
Trading in micro lots does not remove market risk, but it can make position sizing easier to manage relative to account size. As a precaution, the appropriate lot size still depends on your own account balance and risk tolerance, not simply on what is available.
Risk Warning:Trading CFDs involves significant risk and may not be suitable for all investors. Losses can exceed your initial deposit. Please ensure you fully understand the risks involved before trading.
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