Lot

Lot sizes determine the scale of your trades and directly impact your risk per pip. Trading 1 standard lot of EUR/USD means a 1-pip move changes your P&L by approximately $10. At 0.1 lots (mini), it's $1 per pip, and at 0.01 lots (micro), it's $0.10 per pip.

In futures trading, lot sizes are defined by the contract specification. One E-mini S&P 500 contract has a $50 multiplier per point, while a Micro E-mini has a $5 multiplier. Knowing these values is essential for calculating your dollar risk on each trade.

For prop traders, most firms specify maximum lot sizes or maximum open positions. Exceeding these limits can violate your account rules even if your risk per trade is within acceptable bounds. Always check the position limits for your specific account. PropJournal validates your order sizes against your firm's lot size rules.