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Pips, Lots and Leverage
2:39 · 7 chapters · Forex basics, part 2
What you'll learn
1 pip on 1 standard lot of EUR/USD = $10. Pips, lots and leverage explained with real numbers, in under 4 minutes.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- A pip is 0.0001 on most pairs and 0.01 on yen pairs
- Key point 2
- Standard lot 100,000 units ($10 a pip), mini 10,000 ($1), micro 1,000 ($0.10)
- Key point 3
- Pip value on non-USD-quoted pairs changes with the exchange rate
- Key point 4
- Margin at 30:1 vs 500:1 on one lot of EUR/USD
- Key point 5
- UK and EU retail leverage on major pairs is capped at 30:1
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.