<p>A <strong>Mini Lot</strong> in forex trading represents 10,000 units of the base currency, positioning it between the larger <strong>standard lot</strong> (100,000 units) and the smaller <strong>micro lot</strong> (1,000 units). This size lets traders control a moderate position size while managing risk, making it a common choice for retail accounts offered by brokers such as <strong>STB Provider</strong>.</p>

<h2>How It Works</h2>
<p>When you open a trade of one Mini Lot, you are effectively buying or selling 10,000 units of the currency pair’s base currency. For example, in the EUR/USD pair, a Mini Lot means you are trading €10,000 against the equivalent amount in US dollars. The value of each pip movement depends on the quote currency; for most pairs where the USD is the quote, one pip equals $1.00 for a Mini Lot. Trading platforms like <strong>MetaTrader 5</strong> display lot size in the order window, allowing you to select 0.10 lots to represent a Mini Lot. Leverage amplifies the exposure; with 1:100 leverage, a Mini Lot requires only about $100 of margin.</p>

<h2>Why It Matters for Traders</h2>
<p>Using Mini Lots helps beginners practice real‑market conditions without committing the capital needed for a full <a href="/NewSite/encyclopedia/standard-lot/" class="ency-link">standard lot</a>. It provides finer granularity for position sizing, enabling traders to adjust risk per trade more precisely. For instance, if a trader risks 2% of a $5,000 account, a Mini Lot trade with a 50‑pip stop loss would risk approximately $50, fitting within that limit. This scalability supports consistent money management and reduces the emotional strain of large swings.</p>

<h2>Example</h2>
<p>Suppose a trader buys one Mini Lot of GBP/USD at 1.2500, meaning they purchase £10,000 for $12,500. If the price rises to 1.2550, the trade gains 50 pips. With a pip value of $1.00 for a Mini Lot, the profit is $50. Conversely, a drop to 1.2450 would result in a $50 loss. The trader’s required margin, assuming 1:200 leverage from their broker, would be roughly $62.50, leaving ample free margin for additional trades or risk buffers.</p>

<h2>Key Takeaways</h2>
<ul>
<li><strong>Mini Lot</strong> = 10,000 base currency units (0.10 standard lot).</li>
<li>Pip value is typically $1.00 for USD‑quoted pairs, simplifying profit/loss calculation.</li>
<li>Enables precise risk management and is ideal for beginner to intermediate traders.</li>
<li>Available on platforms such as MetaTrader 5 and offered by brokers like STB Provider.</li>
</ul>