Pips, lots and leverage

A lot is the trade size. One standard lot (1.00) in forex is 100,000 units of the currency, and in gold it is 100 ounces. The smallest common size is 0.01 (micro lot).

• EURUSD: one pip = 0.0001. Each pip is worth about $10 per standard lot, and $1 at 0.10 lots.
• Gold: each $1 move in price = $100 per standard lot, and $1 at 0.01 lots.
• Bitcoin: at most brokers one lot = 1 BTC, so each $100 move = $100 per lot.

Leverage lets you open a position larger than your balance. For example 1:100 means $1,000 can open a $100,000 position. Leverage magnifies profits and losses equally.

High leverage is not the problem by itself; lot size is. Your loss is decided by lot size and stop distance, not by leverage.