Contract Size
Trading MechanicsThe number of units of the base currency in one standard lot. For forex, one standard lot is always 100,000 units of the base currency.
What Is Contract Size?
Contract size defines how many units of the Base Currency are in one standard Lot. In forex, the standard contract size is 100,000 units. When you trade 1.00 lots of EUR/USD, you are buying or selling 100,000 euros. Contract size is fixed and does not change with the exchange rate.
Contract Sizes by Lot Type
Standard lot: 100,000 units. Mini Lot: 10,000 units (0.10 lots on your platform). Micro Lot: 1,000 units (0.01 lots). Nano Lot: 100 units (0.001 lots, where available). The contract size directly determines the Pip value and the Margin requirement.
Contract Size for CFDs and Commodities
Unlike forex where the contract size is standardized at 100,000, CFDs on indices, commodities, and stocks have different contract sizes. One lot of gold (XAU/USD) is typically 100 troy ounces. One lot of a stock index might represent one contract. Always check the contract specifications for non-forex instruments on your broker's platform. Our Margin Calculator accounts for different contract sizes when calculating margin requirements.
Related Terms
Lot
The standard unit of trade size in forex. One standard lot equals 100,000 units of the base currency.
Mini Lot
A trade size of 10,000 units of the base currency, equal to one-tenth of a standard lot. One pip equals roughly $1 on EUR/USD.
Micro Lot
A trade size of 1,000 units of the base currency, equal to one-hundredth of a standard lot. One pip equals roughly $0.10 on EUR/USD.
Position Sizing
The process of determining how many lots or units to trade based on your account size, risk tolerance, and stop-loss distance. Proper position sizing ensures no single trade can cause catastrophic damage to your account.