Direct answer
A micro lot in forex is commonly defined as 0.01 of a standard lot. Since a standard lot represents a large contract size in the base currency, 1 micro lot represents one-hundredth of that standard contract size. The exact money you gain or lose for a given price move is not fixed by the micro-lot label alone; it depends on the currency pair, which currency your account uses, and the pip value for that specific pair.
How “1 micro lot” works (mechanics)
In forex, the phrase “micro lot” refers to position size. A common reference point is that a standard lot is 100,000 units of the base currency. Under that convention:
- 1.0 standard lot = 100,000 units
- 1.0 micro lot = 0.01 standard lot = 1,000 units of the base currency
To estimate “how much,” many traders use pip value: the amount of account currency that corresponds to a 1-pip price change. The pip value changes based on:
- The currency pair (because pips map differently depending on where the quote currency sits).
- The quote currency vs. your account currency (you may need an exchange-rate conversion).
- The current exchange rate used for conversions (when conversions are required).
A key limitation follows: “1 micro lot” does not uniquely determine a single dollar figure for every market condition.
Example checks you can do independently
To make the number concrete, choose a single assumption set and compute pip value consistently.
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Check 1: Units (fixed by definition) If the standard-lot reference is 100,000 units, then 1 micro lot corresponds to 1,000 units of the base currency. This part does not require live market data.
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Check 2: Money per pip (pair-dependent) To get a cash amount per pip, you must specify the pair and the exchange-rate relationships needed to express the pip move in your chosen reporting currency. If you omit these inputs, you can only describe pip value behavior qualitatively (it varies by pair and conversion needs).
Relevant limitations and risks
This explanation is informational and bounded: it covers definitions and how the “amount” is typically derived. It does not assume real-time prices, your personal account settings, or the exact contract specifications used by a specific provider. Different providers may describe lot sizes and contract units differently, so the safest verification step is to compare with the contract specifications and pip-value calculator shown in your own trading platform.
Also, pip-value calculations translate to potential gain/loss only when you assume a particular trade direction and price movement; the outcome cannot be predicted from lot size alone.