Pips (percentage in point) are the smallest price movement that a commodity CFD can make based on market convention. In the context of commodities, a pip typically represents a change in price. For instance, if gold (XAU/USD) moves from $1,800.00 to $1,800.10, that 10-cent movement represents 10 pips. Pips are essential for measuring price changes and calculating potential profits or losses in trading. 

Lot sizes refer to the quantity of the commodity being traded. In Commodity CFD trading, there are generally three types of lot sizes: 

Standard Lot: Usually represents 100 ounces of gold or 1,000 barrels of oil. 

Mini Lot: Represents 10 ounces of gold or 100 barrels of oil. 

Micro Lot: Represents 1 ounce of gold or 10 barrels of oil. 

Choosing the appropriate lot size is crucial as it directly affects your risk exposure. Smaller lot sizes, such as mini or micro lots, can help beginners manage risk more effectively, allowing them to gain experience without taking on excessive financial risk.