Nano Lot
Trading BasicsA trade size of 100 units of the base currency, the smallest available lot size. One pip equals roughly $0.01 on EUR/USD.
What Is a Nano Lot?
A nano lot is 100 units of the Base Currency, making it the smallest standard lot size in forex. One pip on a nano lot of EUR/USD is worth approximately $0.01. Not all brokers offer nano lots, but they are available at some platforms that cater to beginners.
When to Use Nano Lots
Nano lots are primarily useful in two situations. First, complete beginners can use them to trade with real money while keeping risk extremely low (a 50-pip loss on one nano lot costs just $0.50). Second, experienced traders use nano lots for very precise position sizing on small accounts or when testing new strategies with live market conditions.
Nano Lots vs. Demo Accounts
While demo accounts offer zero-risk practice, they lack the emotional component of real trading. Nano lots provide a middle ground: real money at risk (which keeps you focused), but so little that a losing streak will not damage your account. Many traders use nano lots as a stepping stone between demo trading and Micro Lot trading. See our Forex Trading for Beginners for a structured approach to getting started.
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.