Lot sizes and leverage

Forex Foundations

Three standard sizes

A standard lot is 100,000 units of currency. A mini lot is 10,000 units. A micro lot is 1,000 units. Leverage lets a trader control one of these lots while only putting up a small fraction of its full value as margin.

Margin is a fraction of full value

At 50:1 leverage, controlling a $100,000 standard lot position requires only $2,000 of margin. The leverage doesn't change the pip value or the risk, it just changes how much capital is tied up to hold the position.

Leverage changes margin, not risk per pip

Leverage amplifies both directions equally. It lets a small account control a meaningful position size, but it does nothing to protect against loss, the dollar risk per pip is exactly the same regardless of leverage.