Many new traders just type a number in the Lot field without knowing what it means. Lot size simply means the size of the position you're buying.

1 KG in forex (know your exposure)

  • Gold: 1 lot = 3.11 KG, so 1 KG ≈ 0.32 lot. 0.01 lot ≈ 31.1 grams of gold.
  • Silver: 1 lot = 155.5 KG, so 1 KG ≈ 0.006 lot. 0.01 lot ≈ 1.5 KG of silver (this is why silver is very risky).

Indices (US30, NAS100)

For most brokers, 1.00 lot on NAS100 or US30 means buying 1 contract at market price. If it's 18,000, then 1 lot controls $18,000.

General examples

  • EURUSD: 1.00 lot = 100,000 EUR; 0.01 lot = 1,000 EUR
  • XAUUSD (gold): 1.00 lot = 100 ounces; 0.01 lot = 1 ounce
  • USOIL: 1.00 lot = 100 barrels; 0.01 lot = 1 barrel

How to check your broker's contract size

In MT4/MT5: right-click the symbol → Specification → look at Contract Size. This tells you what 1.00 lot equals.

The most dangerous beginner mistake

Don't assume 0.01 is the same on everything:

  • EURUSD 0.01 = 1,000 EUR
  • Gold 0.01 = 1 ounce
  • Silver 0.01 = large exposure that can blow accounts fast

Before hitting Buy or Sell, check the Contract Size and calculate your risk precisely.

Spread — your real trading cost

Spread is the difference between buy and sell price — a service fee to the broker, not riba. The moment you open a trade you start slightly negative by the spread. Trade 20 times a day and it adds up fast. Professionals always watch spread, commission, slippage, and execution quality. Ignoring spread doesn't make you a "real trader" — it makes you a profitable customer for the broker and IB. And beware: an unusually low spread is also worth questioning.

Never underestimate 0.01

0.01 isn't about money — it's about survival. It teaches you to control risk, emotions, and discipline. If you can't stay consistent over 100 trades at 0.01, you won't survive 10 trades at 1.0. Survival > profit.

Shalaw Koy