Nano Lot
A nano lot is an extremely small standardised trade size, typically used in forex. It is commonly 100 units of the base currency, often shown as 0.001 lots.
In plain English: "A nano lot is one-thousandth of a standard lot."
Nano sizing is about precision and safety. It's not about "making money fast".
What Is a Nano Lot?
In spot forex, the common lot structure looks like this:
| Lot type | Typical size | Platform label |
|---|---|---|
| Standard lot | 100,000 units | 1.00 |
| Mini lot | 10,000 units | 0.10 |
| Micro lot | 1,000 units | 0.01 |
| Nano lot | 100 units | 0.001 |
⚠️ Not Always Available
Many brokers do not offer nano lots as a "lot label". Some offer unit-based trading instead. If you can trade 100 units directly, it's effectively nano sizing.
Nano Lot vs Micro Lot vs Mini Lot vs Standard Lot
- Nano (0.001): ~100 units → 10× smaller than micro.
- Micro (0.01): ~1,000 units → 10× smaller than mini.
- Mini (0.10): ~10,000 units → 10× smaller than standard.
- Standard (1.00): ~100,000 units.
💡 Why This Matters
Each step up is usually a 10× change in size. If you jump from nano to micro, your pip value jumps by ~10×.
Nano Lots and Pip Value
Nano lots typically create tiny pip values. That means:
- Small P&L per pip (good for practising without big swings).
- More flexibility for risk-based sizing on very small accounts.
- Less margin pressure compared to larger sizes (but leverage still matters).
⚠️ Reality Check
If your pip value is too small, it can feel like "nothing happens". That is normal. The goal of nano sizing is skill building and controlled risk, not excitement.
When Are Nano Lots Useful?
Nano sizing is useful when:
- You have a very small account and still want to trade responsibly.
- You want to practise execution (entries/exits) with real market behaviour.
- You are testing a strategy and want clean data with minimal money impact.
- You want very precise position sizing (e.g., to match a fixed £ risk with a wide stop).
💡 Practical Use Case
If your stop needs to be wide (say 80–120 pips), nano sizing may let you keep risk sensible while still following your strategy rules.
Common Nano-Lot Mistakes (and Fixes)
- Thinking nano lots remove risk: they reduce size, but poor discipline still loses money.
Fix: use a stop-loss and a risk limit per trade. - Overtrading because the size feels tiny: many small losses still add up.
Fix: keep a trade plan and limit the number of attempts. - Assuming all brokers support 0.001 lots: availability varies.
Fix: check minimum trade size or use unit-based trading.
⚠️ Beginner Rule
Your job is to build a repeatable process. Nano sizing is a tool to protect the account while you learn the process.
Common Misconceptions
- "Nano lots are pointless."
They're excellent for learning, testing, and very small accounts. - "If my P&L is tiny, I'm wasting time."
Skill-building and execution quality come first. Scaling comes later. - "Nano lots mean no margin issues."
They reduce exposure, but leverage and multiple open positions can still create margin pressure.
✅ Quick Checkpoint
Try answering before expanding the model answers.
1) What is a nano lot in spot forex?
Typically 100 units of the base currency, often shown as 0.001 lots.
2) Do all brokers offer nano lots?
No. Some offer micro lots as the minimum, or they use unit-based trading instead.
3) What is a sensible reason to use nano lots?
To control risk on a small account or practise execution with minimal money impact.
You've completed the Units & Measurement list for this group.
Frequently Asked Questions: Nano Lots
Is 0.001 lots always 100 units?
In spot forex, that's a common convention. However, some brokers and CFD products define "lot" differently. Always confirm contract size in the instrument specification.
How do nano lots relate to unit-based trading?
Unit-based trading lets you pick the exact number of units (e.g., 100 units), which is essentially nano sizing without using lot labels.
Can I make meaningful profits using nano lots?
With nano lots, profit per pip is very small, so absolute profits will be small too. Nano sizing is best for learning and testing. Scaling up comes once you have consistency and risk control.
Are nano lots available on MT4/MT5?
It depends on the broker's minimum volume step and contract settings. Some brokers allow 0.01 minimum, others allow 0.001. Check your broker's symbol specification.
Summary
A nano lot is typically 100 units in spot forex (0.001 lots). It enables very small position sizing for tight risk control, small accounts, and practising execution. Availability varies — unit-based trading often achieves the same result.