GLOSSARY
Micro lot
The smallest size most brokers offer — 1,000 units, and about ten cents a pip.
Updated 2026-09-04 · Educational content · No broker owns this site
Quick answer. A micro lot is 1,000 units of the base currency, one hundredth of a standard lot. On a pair quoted to four decimals against the US dollar, one pip on a micro lot is worth about $0.10.
A micro lot is 1,000 units of the base currency —
one hundredth of a standard lot, shown on the platform
as 0.01. It is the smallest volume most retail brokers accept.
At this size one pip is about ten cents, which changes what a losing trade means. A 40-pip loss costs $4 rather than $400. Nothing about the market is safer; the tuition is just cheaper while you are learning to follow your own rules.
What is one pip worth on a micro lot?
0.0001 × 1,000 = $0.10. A 25-pip winner is $2.50; a 25-pip loser is $2.50. On a $500 account, risking 1% means $5 a trade — which at ten cents a pip supports a 50-pip stop on one micro lot.
Is a micro lot too small to bother with?
It is small in dollars and full-size in every other respect. You still face the real spread, real slippage, and the real discomfort of watching a position go against you — which is the part beginners actually need to practise. A demo account removes the money; a micro lot keeps the money small but real.
The honest limitation is the other direction: at ten cents a pip, no realistic run of winners turns a small account into an income. Treat the size as the cost of learning, not as a business plan.
What do beginners get wrong?
The classic error is jumping straight from micro to standard lots after a good stretch — multiplying every future loss by 100 at the moment confidence is highest. The second is concluding "it's only ten cents a pip" and skipping the stop loss entirely. An unprotected micro lot can still run a long way against a $500 account.
Related terms
- Lot · Mini lot · Standard lot
- Pip · Stop loss
Frequently asked questions
Is 0.01 lots a micro lot?
Yes. A volume of 0.01 on most retail platforms means one micro lot, or 1,000 units of the base currency.
Can you make a living trading micro lots?
No. At roughly ten cents a pip the arithmetic does not support an income, and trading results are not predictable in any case. A micro lot is a way to practise with real consequences at a small scale.
Do all brokers offer micro lots?
Most retail brokers do, but not all, and some apply a minimum commission that makes very small trades relatively expensive. Check the contract size and the fee schedule before opening an account.