A pip is usually the fourth decimal place on most pairs (0.0001). On USD/JPY and similar quotes, a pip is often the second decimal (0.01). Brokers may quote fractional pips (“pipettes”) on five-digit platforms.
Lot size maps account currency risk to market movement. A standard lot is 100,000 units of the base currency in interbank language; micro and mini lots scale that down for smaller accounts.
Before sizing, define stop distance in pips and maximum loss in account currency. If the math does not fit your plan, reduce size rather than widening the stop without a thesis change.
Educational only — verify contract specifications with your broker.
Educational only · not investment advice · Risk disclosures