Understanding trading units is fundamental to calculating position sizes, measuring profits and losses, and managing risk effectively. Master pips, lots, points, and ticks to trade with precision.
Start with pips - the most common unit - then learn about lot sizes for proper position sizing.
6 min read
The fundamental unit of price movement in forex. Learn what pips are, how to count them, and calculate pip values for any currency pair.
5 min read
Fractional pips for more precise pricing. Understand 5-decimal pricing and when pipettes matter for your trading.
5 min read
How points differ from pips, particularly in indices and stock CFDs. Learn the terminology used across different markets.
5 min read
The smallest possible price movement. Learn about tick sizes in futures, forex, and other markets.
6 min read
100,000 units of base currency - the standard lot. Understand pip values and margin requirements for full-size positions.
5 min read
10,000 units - one-tenth of a standard lot. Perfect for traders with smaller accounts who want meaningful position sizes.
5 min read
1,000 units - ideal for beginners and precise risk management. Learn why micro lots are recommended for new traders.
5 min read
100 units - the smallest lot size available. Perfect for testing strategies with real money at minimal risk.
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Last updated: March 2026