{"id":15,"date":"2026-06-17T00:31:36","date_gmt":"2026-06-17T00:31:36","guid":{"rendered":"https:\/\/ea.nolimitalgo.com\/brokerhub\/pips-points-lots-and-spread-explained\/"},"modified":"2026-06-17T00:31:36","modified_gmt":"2026-06-17T00:31:36","slug":"pips-points-lots-and-spread-explained","status":"publish","type":"post","link":"https:\/\/ea.nolimitalgo.com\/brokerhub\/pips-points-lots-and-spread-explained\/","title":{"rendered":"Pips, Points, Lots, and Spread Explained"},"content":{"rendered":"<p class=\"fxp-article-lead\">Pips, points, lots, and spread are the operating language of forex. Confusing these units can turn a reasonable strategy into a dangerous position.<\/p>\n<h2>Price Measurement<\/h2>\n<p>A pip is commonly the fourth decimal place on most forex pairs and the second decimal place on many JPY pairs. A point is the smallest price increment shown by the broker and may be one-tenth of a pip on five-digit quotes.<\/p>\n<p>Spread is the distance between bid and ask. The position normally begins negative by approximately the spread because a buy opens at ask and closes at bid, while a sell does the reverse.<\/p>\n<h2>Position Size<\/h2>\n<p>A lot describes trade volume. Standard, mini, and micro lots represent different contract sizes, but the actual value depends on the symbol specification and account currency.<\/p>\n<p>Choose lot size from the stop distance and acceptable account risk, not from a desired profit target.<\/p>\n<h2>Practical Checklist<\/h2>\n<ul>\n<li>Confirm symbol digits and tick value.<\/li>\n<li>Calculate monetary risk before entry.<\/li>\n<li>Include spread and commission in testing.<\/li>\n<\/ul>\n<div class=\"fxp-risk-note\"><strong>Risk note:<\/strong> Educational content does not guarantee trading results. Test every method, define risk before entry, and use capital you can afford to lose.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A clear explanation of the measurement units that determine trading cost, position size, and profit or loss.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-15","post","type-post","status-publish","format-standard","hentry","category-forex-basics"],"_links":{"self":[{"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/posts\/15","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/comments?post=15"}],"version-history":[{"count":0,"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/posts\/15\/revisions"}],"wp:attachment":[{"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/media?parent=15"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/categories?post=15"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ea.nolimitalgo.com\/brokerhub\/wp-json\/wp\/v2\/tags?post=15"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}