Lot size and pips are crucial for understanding potential profit and risk in trading. The lot size determines the value gained or lost per pip movement. For example, in forex trading, a standard lot is 100,000 units of currency, and each pip movement is typically worth $10. If the market moves 10 pips, that's a $100 change in your position. Seasoned traders often adjust lot size based on their risk tolerance, account size, and market volatility. It's common to risk only a small percentage of your account on each trade. A practical tip is to use a position size calculator to align your lot size with your risk management strategy. How do you currently determine your risk per trade?