Lot Sizes
At FXTM, we’re on a mission to provide each and every one of our clients with the best range of trading options possible. That’s why we offer a broad variety of lot sizes, from micro lots and mini lots to standard lots on spot metals. This allows you to choose the lot size which works best for you and your trading strategy.
Choosing the lot size which suits you best as a trader means you have full control of your trading activity. Traders may be drawn to different lot sizes depending on their trading level and amount of experience on the markets.
Example: Buy 1 lot XAU/USD
Deposit: $10,000
Open Price: 1284.28
Close Price: 1285.39
Notional Value ($) = Volume * Contract Size * Open Price = 1 * 100 * 1284.28 = $128,428
Profit: (Close Price - Open Price) * Volume * Contract Size = (1285.39 - 1284.28) * 1 * 100 = $111
Costs
Swap: Volume * Swap Rate * Pip Value * Number of nights = 1 * -13.5 * 1 * 1 = -$13.50
Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 100 * 1284.28) / 1,000,000 * -20 * 2 = -$5.14
Cumulative Costs = Swap + Commission = -$13.50 - $5.14 = -$18.64
Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (18.64 / 128,428) * 100 = 0.0145%
Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (111 / 10,000) * 100 = 1.11%
Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (111 - 13.50 - 5.14 / 10,000 ) * 100 = 0.92%
Reduction of profit = 1.11% - 0.92% = 0.19%
Example: Buy 1 lot XAU/USD
Deposit: $10,000
Open Price: 1284.28
Close Price: 1283.24
Notional Value ($) = Volume * Contract Size * Open Price = 1 * 100 * 1284.28 = $128,428
Profit: (Close Price - Open Price) * Volume * Contract Size = (1283.24 - 1284.28) * 1 * 100 = -$104
Costs
Swap: Volume * Swap Rate * Pip Value * Number of nights = 1 * -13.5 * 1 * 1 = -$13.50
Commission: (Volume * Contract Size * Open Price) / 1,000,000 * Commission * 2 = (1 * 100 * 1284.28) / 1,000,000 * -20 * 2 = -$5.14
Cumulative Costs = Swap + Commission = -$13.5 - $5.14 = -$18.64
Cumulative Costs (%) = (Cumulative Costs / Notional Value) * 100 = (18.64 / 128,428) * 100 = 0.0145%
Cumulative Effect of Costs on Return (without fees) = (Profit / Deposit) * 100 = (-104 / 10,000) * 100 = -1.04%
Cumulative Effect of Costs on Return (with fees) = (Profit - Cumulative Costs / Deposit) * 100 = (-104 - 13.50 - 5.14 / 10,000 ) * 100 = -1.23%
Reduction of profit = 1.23% - 1.04% = 0.19%
*For FXTM Invest, the Strategy Profit Share represents a percentage of the profits that will be awarded to the Strategy Manager for his/her positive performance. Example: If the above example refers to a profitable trade in FXTM Invest, and the Strategy Manager sets a performance fee of 20%, then the Client’s net profit would amount to: (Net Profit) - (Net Profit * 20% Manager fee) = (111 - 18.64) - (92.36 * 20%) = $73.89.
**Such estimations are based on assumptions and may deviate from costs and charges that will actually be incurred. Swaps and commissions may be subject to change. For more information please refer to our contract specifications and commissions pages. Transaction costs and fees incurred in currencies other than the currency of the account are converted on a real-time basis in MetaTrader, at no additional cost to the client.
