How to Calculate Lot Size for USDJPY
BY TIOmarkets
|May 19, 2025Understanding how to calculate lot size for USDJPY when trading may seem confusing for beginner traders, but it’s a critical aspect of risk management that can not be overlooked.
Your lot size directly impacts how much you could potentially profit or lose on a USDJPY trade, and this can affect the overall performance of your trading strategy. So in this article, we'll explore how to calculate the lot size for USDJPY, including the pip values for lot sizes.
Continue reading to learn more about the essential concepts for calculating the lot size when trading USDJPY.
How to calculate lot size for USDJPY
There are various methods to determine the lot size when trading USDJPY. Some traders refer to the average true range (ATR) to gauge price volatility, while others calculate the distance between their entry price and stop loss. Based on either of these measurements, they adjust their lot size according to their risk tolerance.
Regardless of the method you choose, grasping the concept of lot size for USDJPY trading and how it relates to the value of a pip is crucial for managing risk. The knowledge contained in this article is essential to ensure you select the appropriate volume or lot size before executing any trade.
You can also use our lot size calculator to simplify the process.
What is the lot size for USDJPY?
The lot size for USDJPY is the amount of currency you will be buying or selling and is usually expressed as units of the base currency.
- One standard lot (1.0 lots) represents 100,000 units of the base currency.
- One mini lot (0.1 lots) represents one tenth of a lot, or 10,000 units of the base currency.
- One micro lot (0.01 lots) represents one hundredth of a standard lot or 1,000 units of the base currency.
- One nano lot (0.001 lots) represents one thousandth of a standard lot or 100 units of the base currency.
The lot size for USDJPY is the number of units of the base currency you will be buying or selling per standard lot and this will have a direct relationship with the pip value.
The lot sizes for USDJPY, as well as the pip values are below;
| USDJPY lot size | MT4 / 5 volume | Number of units (USD) | Pip value (JPY) |
| Standard | 1.0 | 100,000 | 0.01 = JPY 1000 |
| Mini | 0.1 | 10,000 | 0.01 = JPY 100 |
| Micro | 0.01 | 1,000 | 0.01 = JPY 10 |
| Nano | 0.001 | 100 | 0.01 = JPY 1 |
The pip value for USDJPY is denominated in terms of the quoted currency. If your account base currency is denominated in another base currency other than JPY, the pip value will require additional conversion based on the relevant exchange rates.
For example, if your trading account is denominated in USD, the pip value in JPY should be converted to USD using the JPYUSD exchange rate.
This is what they are based on the exchange rate at the time of this writing.
| USDJPY lot size | MT4 / 5 volume | Number of units (USD) | Pip value (USD) |
| Standard | 1.0 | 100,000 | 0.01 = USD 6.85 |
| Mini | 0.1 | 10,000 | 0.01 = USD 0.69 |
| Micro | 0.01 | 1,000 | 0.01 = USD 0.07 |
| Nano | 0.001 | 100 | 0.01 = USD 0.01 |
Use our pip value calculator to simplify the process.
Understanding the contract specification for USDJPY trading
The specific details of how to calculate the lot sizes mentioned above can be found in the contract specification. You can find this inside the MT4 or MT5 trading platform.
Here’s how;
- Right-click on any symbol in the market watch window.
- Select “Specification” from the pop-up menu that appears.
An example is included below and the highlighted rows are particularly important for understanding and calculating the lot size for USDJPY.
USDJPY contract specification
As you can see from the contract specification above, the lot size for USDJPY is 100,000 units per standard lot. Which means that whenever you select 1.0 lots in the volume field on the MT4 or MT5 trading platform, you will be buying or selling 100,000 USD.
Further down the contract specification sheet, you will see the minimum volume, maximum volume and volume step information. The first two are self explanatory, they inform you what the minimum and maximum lot sizes are. In this case, the minimum volume is 0.01 lots, which is 1/100th of a standard lot (1.0). If 1.0 lots is equal to 100,000 USD, then a volume of 0.01 will be 1,000 USD.
The volume step tells you the minimum increment or decrement you can enter on the trading platform. In this example, you can buy or sell in step increments of 0.01 lots. In other words, you can buy or sell from 0.01 lots, up to the maximum volume or lot size.
How the lot size for USDJPY affects pip values
As you have come to learn so far, the lot size for USDJPY is the term used to describe the number of units that you are trading. The lot size is directly related to, and has a significant effect on the pip value. This in turn affects how much money you can potentially make or lose when trading USDJPY.
As a rule, the smaller the lot size, the smaller the pip value is and vice versa. Your risk and profit potential will be less when trading smaller lot sizes, compared to when you are trading larger lot sizes or a higher quantity of USDJPY.
How to calculate lot size for USDJPY trading
When you begin trading USDJPY, one of the most vital steps is determining how much you're willing to risk per trade. Understanding how to calculate lot size for USDJPY helps you align your trade volume with your risk tolerance. So if you are stopped out, you do not lose more than you initially intended. (Not taking slippage into account)
Let’s suppose you're prepared to risk $100 on a trade and you have decided that your stop loss will be placed 100 pips away from your entry price. Using the formula below, you can easily calculate what the lot size should be to stay within your predefined risk tolerance.
USDJPY lot size calculation formula
Lot Size = Risk amount in USD / Stop loss in pips
Lot size = $100 / 100 pips
Lot size = $1.00 per pip
Lot size = 0.14 lots (or 14,000 units of USDJPY)
Let’s consider another example:
Imagine USDJPY is trading at ¥145.00, and you’re willing to risk up to $200 on a long trade. You have also determined that your stop loss should be placed 50 pips away at ¥144.50.
To calculate the lot size, first find the pip value that you should be trading by dividing the amount to risk by the distance of your stop loss in pips.
Lot Size = Risk amount in USD / Stop loss in pips
Lot size = $200 / 50 pips
Lot size = $4.00 per pip
Lot size = 0.58 lots (or 58,000 units)
Why lot size is so important for USDJPY trading
The reason why you should know how to calculate lot size for USDJPY, is because it directly affects how much you could potentially profit or lose on a trade. The higher your risk tolerance and amount to risk, the higher your lot size can be. Conversely, the lower your risk tolerance and amount to risk, the lower your lot size should be.
Lot sizes for USDJPY are standard, you first need to know how many units are in one standard lot and the corresponding pip value. This information is available on the contract specifications sheet inside the MT4 and MT5 trading platform. When you know this, calculating what lot size you should be trading for USDJPY will be straightforward.
FAQ’s
Can I change my lot size after placing a trade?
You cannot change the lot size of an open trade on a hedging account, but you may be able to on a netting account. If you wish to adjust your lot size once the trade has been executed, you will need to close the current trade or open new ones to achieve the desired lot size.
What happens if I use too large of a lot size?
Using too large of a lot size relative to your account balance can significantly increase your potential to profit, as well as the risk of loss.
Does the lot size affect the spread or commissions I pay?
The lot size does not directly affect the spread unless the volume is large enough to absorb the available liquidity in the market. The lot size does affect the commission you will pay and this is charged pro rata, per round turn lot. So the higher the lot size traded, the higher the commission will be.
How do I know what my maximum lot size should be?
Your maximum lot size should be determined by your risk tolerance and the size of your account balance. The trading community suggests risking a small percentage of your account balance on any single trade idea (e.g. 1-3%). You should calculate the lot size that aligns with your risk tolerance and the distance you intend to place your stop-loss from your entry price.
Are lot sizes the same for all currency pairs?
Standard, mini, micro and nano lots are common lot sizes for most currency pairs, but they can vary when exotic currencies are involved. You should check the contract specification for the symbol you are trading to confirm the standard lot size.
Is there a difference between volume and lot size?
On the MT4 or MT5 trading platform, the volume field represents the lot size. A volume of 1.0 is 1 standard lot, 0.1 is 1 mini lot, 0.01 is 1 micro lot and 0.001 is 1 nano lot. Volume and lot size are interchangeable terms that represent the quantity being bought or sold.
Where can I find the contract specifications for USDJPY?
You can find the contract specifications for USDJPY in the MT4 or MT5 trading platform. Right-click on the USDJPY symbol in the Market Watch window and select "Specification" from the menu. This will provide details about the standard contract size, minimum and maximum trading volumes, and other relevant trading information.
Learn how to calculate lot size in other markets
- How to calculate lot size in forex
- How to calculate lot size for indices
- How to calculate lot size for stocks
- How to calculate lot size for commodities
- How to calculate lot size in crypto
Take your knowledge further with TIOmarkets
Take your knowledge further with our suite of educational resources, then put it to the test on a demo or live trading account.
With TIOmarkets, you can trade in the forex, indices, stocks, commodities and futures markets, with low fees and fast order execution speeds. Whether you’re a beginner or experienced trader, we are committed to providing you with knowledge and support to help you trade in the markets effectively.
Register your account with TIOmarkets.
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & Countries included in the OFAC sanction list. The Company holds the right to alter the aforementioned list of countries at its own discretion.
TIOmarkets offers an exclusively execution-only service. The views expressed are for information purposes only. None of the content provided constitutes any form of investment advice. The comments are made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and its affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances, or needs. The content has not been prepared in accordance with any legal requirements for financial analysis and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits duplication or publication without explicit approval.
Join us on social media
Behind every blog post lies the combined experience of the people working at TIOmarkets. We are a team of dedicated industry professionals and financial markets enthusiasts committed to providing you with trading education and financial markets commentary. Our goal is to help empower you with the knowledge you need to trade in the markets effectively.
Related Posts
undefined