In forex trading, transactions are executed using standardized contract units called lots, while leverage determines the margin required to open and maintain those positions:
- Standard Lot Sizes:
- 1 Standard Lot: 100,000 units of the base currency
- 1 Mini Lot: 10,000 units (0.10 of a standard lot)
- 1 Micro Lot: 1,000 units (0.01 of a standard lot)
- Trading Volume Flexibility:
- Both Standard STP and RAW ECN accounts default to standard lot contract specifications.
- You do not need to trade a full standard lot; VT Markets platforms allow a minimum trade size of 0.01 lots (1 micro lot), enabling traders of all capital levels to participate.
- How Leverage and Margin Work:
- Leverage Concept: Leverage allows you to control larger positions with a smaller upfront deposit (margin).
- Standard Account Leverage: VT Markets offers leverage up to 500:1, meaning that for every $1,000 of account equity, you can control up to $500,000 in currency value.
- Calculation Example: If you trade 1 standard lot of EUR/USD ($100,000 contract value) using 500:1 leverage, VT Markets only reserves $200 as required margin to open the trade ($100,000 / 500 = $200).
If you wish to check the leverage and minimum trade size for specific products, you can view the product specifications on VT Markets platforms—such as the VT Markets App or MT4/5.