Forexogram

Trading resources

Pips, lots and position size

Translate a price move into account-currency risk.

Risk

The essentials

A conventional pip is usually 0.0001, or 0.01 for JPY-quoted pairs. A standard forex lot commonly represents 100,000 base units. Verify your broker’s contract specification rather than assuming every product follows this convention.

Put it in context

For EUR/USD, 100,000 units multiplied by 0.0001 gives USD 10 per pip. With USD 100 planned risk and a 30-pip stop, the theoretical position is 100 ÷ (30 × 10) = 0.333 lots before costs. Convert pip value when the quote and account currencies differ.

Before you act

Allow for spread, commission, slippage and permitted order increments. A stop is not a guarantee of maximum loss.

Further reading: CFTC forex education, BLS CPI, Federal Reserve monetary policy. Reviewed 6 October 2026.