A pip is the standard small step in a market's price. A lot is the standard trade size. Knowing what one pip is worth at your lot size tells you exactly what a stop-loss will cost if it's hit.
The sizes Pipfox uses
| Market | 1 pip | 1 lot | 1 pip at 1 lot | 1 pip at 0.01 lot |
|---|---|---|---|---|
| Gold (XAU/USD) | $0.10 | 100 oz | $10 | $0.10 |
| Silver (XAG/USD) | $0.01 | 5,000 oz | $50 | $0.50 |
| Brent oil | $0.01 | 1,000 barrels | $10 | $0.10 |
| EUR/USD | 0.0001 | €100,000 | $10 | $0.10 |
| GBP/USD | 0.0001 | £100,000 | $10 | $0.10 |
| USD/JPY | ¥0.01 | $100,000 | ¥1,000, about $6–7 | about $0.06–0.07 |
Brokers differ slightly on metals and oil; these are the common MetaTrader definitions. Send /lots to @pipfoxbot to see them any time.
Standard, mini and micro lots
1 lot is a standard lot, 0.1 a mini lot and 0.01 a micro lot. Start small: at 0.01 lot a 50-pip move on gold or EUR/USD is $5.
Sizing a trade from your risk
Decide what you're willing to lose, then divide by the stop's distance in pips. Example: you'll risk $20 on EUR/USD with a 40-pip stop. $20 ÷ 40 pips = $0.50 a pip, which is 0.05 lot. In Pipfox: /long EURUSD 0.05 lot sl 40 pips.
The preview repeats the sum back to you (the value of one pip, and what the stop would lose) before anything is placed.
Trading with leverage can lose you more than you expect, and quickly. Only trade money you can afford to lose. This guide is general information, not financial advice.