Learn the basics of lots and margin in CFD trading with Doto. Discover how lot sizes affect trades and how margin requirements work. Enhance your strategy today!
Two fundamental concepts when trading CFDs are lots and margin. These elements are critical for managing trades effectively and enhancing your overall trading strategy.
What is a lot?
A lot is a standard unit of measurement in CFD trading that quantifies the amount of a financial instrument being traded. Since price movements are often small, trading in larger quantities simplifies calculations and enhances trading efficiency.
Types of lot sizes:
Standard lot: The largest unit, equivalent to 100,000 units of the base currency in forex.
Mini lot: Smaller than a standard lot, equal to 10,000 units.
Micro lot: A fraction of a mini lot, representing 1,000 units.
Nano lot: The smallest unit, consisting of 100 units.
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Scroll down for more information
Instrument | Lot type | Lot size | Example |
Forex pairs | Standard lot | 100,000 units | 100,000 EUR in EURUSD |
Mini lot | 10,000 units | 10,000 EUR in EURUSD | |
Micro lot | 1,000 units | 1,000 EUR in EURUSD | |
Nano lot | 100 units | 100 EUR in EURUSD | |
Metals | Standard lot | 100 ounces (gold) 5,000 ounces (silver) | 100 ounces of gold 5,000 ounces of silver |
Mini lot | 10 ounces (gold) 500 ounces (silver) | 10 ounces of gold 500 ounces of silver | |
Micro lot | 1 ounce (gold) 50 ounces (silver) | 1 ounce of gold 50 ounces of silver | |
Exotic pairs | Standard lot | 100,000 units | 100,000 USD in USDTRY |
Mini lot | 10,000 units | 10,000 USD in USDTRY | |
Micro lot | 1,000 units | 1,000 USD in USDTRY | |
Nano lot | 100 units | 100 USD in USDTRY | |
Oil | Standard lot | 1,000 barrels | 1,000 barrels of WTI crude oil |
Mini lot | 100 barrels | 100 barrels of WTI crude oil | |
Micro lot | 10 barrels | 10 barrels of WTI crude oil | |
Indices | Standard lot | Varies by index | 1 contract of S&P 500 |
Mini lot | Varies by index | 0.1 contract of S&P 500 | |
Micro lot | Varies by index | 0.01 contract of S&P 500 |
📌 Example:
If you are trading EURGBP and you buy 1 lot, you are buying 100,000 euros. If you are trading USDJPY and you buy 1 lot, you are buying 100,000 USD.
What is margin?
Margin is the amount of money required to open and maintain a leveraged position in the market. Doto locks a small amount of money on your account and adds the rest using the leverage mechanism. The margin is expressed as a percentage of the full position size.
📌 Example:
If you have a leverage ratio of 100x, you can control a $100,000 position with just $1,000 of margin, which is 1% of the position size.
Margin and lots at Doto
You can set the margin size used for each trade by adjusting the slider bar on the right side of your trading terminal, if you’re trading on a browser.
If you’re using the Doto app, the scroll bar is above the Open up trade button.
Minimum and maximum trade volume
On the left and right ends of the slider, you can see the minimum and maximum margin available. The minimum margin is automatically calculated based on the number of units you want to buy, the current price and the leverage.
You can select the volume size from 0.01 lots. The maximum lot size is the maximum number of lots you can buy at the current market price. The maximum margin is your free margin — that is, funds that can be used for opening trades.