What are FX Contract Units? What do contract units mean in forex trading?

The number of contracts in foreign exchange is also called the contract unit, which is the trading volume itself, which is the amount of money bought and sold.

For example, in foreign exchange, the contract unit of 100,000 is 1 standard lot, also called 100k.

Therefore, the contract unit provided by the broker: 1k, 5k, 10k, 50k, 100k, etc., is the contract unit that the user can choose.

k is an abbreviation of the word kilogram, which refers to 1000, if the contract unit is 10k, it means that the minimum trading share of each order is 10,000 base currency, if the contract unit is, it means that the minimum trading share of each order is 100 base currency.

Contract size refers to the quantity traded in 1 foreign exchange contract. The contract unit of 1 foreign exchange contract is 100,000 base currency. For example:

The contract unit for 1 lot is EUR 100,000 for EUR and 1 lot for GBP JPY is 100,000 GBP.

Foreign exchange forward transaction, also known as futures foreign exchange transaction, refers to a foreign exchange transaction in which the buyer and seller of foreign exchange first sign a contract to stipulate the quantity, exchange rate and time of future delivery of foreign exchange, and then handle the receipt and payment of currency according to the provisions of the contract on the specified delivery date.

1 standard lot = 100,000 (**, sell currency).

The unit of foreign exchange contract is also called the number of foreign exchange contracts, which simply refers to the volume of traders' orders, that is, the number of currencies bought and sold. As we all know, the number of transactions in foreign exchange trading is generally expressed in lots, and the number of lots can be converted with foreign exchange contract units, and a contract unit of 100,000 is a standard lot, also known as 100k.

If the trader's contract unit is 10k, then the minimum trade share is 10,000 base currency. The minimum lot size in forex trading is a standard lot, which is expressed in contract units. That is, the minimum share of each trade in forex trading is 100 base currencies.

In addition to foreign exchange currency pairs, **, **, etc. also have contract units, but they are calculated differently from foreign exchange currency pairs. The ** of a standard contract represents a trade of 100 ounces**, and the trading ** of a standard contract represents 1000 barrels.

Contract size refers to the quantity traded in 1 foreign exchange contract. The contract unit of 1 foreign exchange contract is 100,000 base currency. For example:

The contract unit for 1 lot is EUR 100,000 for EUR and 1 lot for GBP JPY is 100,000 GBP.

So in Forex, in order to make it more convenient to invest, we will introduce a concept - "standard lot". So what does a standard lot mean? With 100,000 contract units as a "standard lot", a unified foreign exchange transaction is carried out.

Then there are some other currency contract units that look like this:

Forex – 100,000 currency units (1 standard lot).

** - 100 oz. (1 standard lot).

** - 1000 barrels (1 standard lot).

** - 1000 kg or 500 oz (1 standard lot).

Generally, it is calculated on a standard lot basis.

Contract size refers to the quantity traded in 1 foreign exchange contract. The contract unit of 1 foreign exchange contract is 100,000 base currency. For example:

The contract unit for 1 lot is EUR 100,000 for EUR and 1 lot for GBP JPY is 100,000 GBP.

All forex currency pairs lots.

Product Volume Unit.

Copper, pounds, palladium, troy ounces.

White gold Countery ounces.

Current** (all **currency pairs) Ounce Current** (all **currency pairs) Ounce commodity.

Product Volume Unit.

Corn bushels.

Cotton pounds. Fuel gallons.

Sucrose pounds. Soy bushels.

UK** barrel.

American** barrel.

Wheat bushels.

Stock Index Products A unit of trading volume.

AUS200 contract.

estx50 contract.

FRA40 contract.

ger30 contract.

HK50 contract.

JPN225 contract.

SPX500 contract.

UK100 contract.

US30 contract.

n species... There are dozens of currencies among the 7 major currencies.

I don't know if you're long or short.

If you go long, you will make a profit of $5,500.

If you go short, you will lose $5,500.

Entry price.

Exit price. Profit range: 550pip (small points), standard point 55 points, GBP/USD spread is generally around ten points, depending on the platform. Opening and closing positions will eat spreads, as well as slippage, etc., and the profit in hand should be around 530 according to 10 points (slippage is not calculated).

10 lots is $5,300.

Profit and loss in foreign exchange trading = *** profit and loss points * pip value.

According to this example, how to calculate the profit and loss points and point value, there are two ways to calculate the profit and loss points and point value, and the essence is the same. The following two methods are used to calculate the amount of profit and loss of this order:

1, the standard foreign exchange contract is generally 6 digits **, the decimal point is not counted, the last digit is not counted, pure mathematical addition and subtraction, we get 15285-15230 = 55 points, this calculation method is called "big point" in the industry, 1 lot of ** so calculated points 1 point is worth 10 US dollars. The profit and loss amount of this transaction = 10 * 55 * 10 = 5,500 USD. Since the last bit is omitted, this algorithm is rough.

But this algorithm is also accurate if the last digit of the entry and exit price is the same.

2, the decimal point is not counted, pure mathematical addition and subtraction we get 152850-152300 = 550 points, 1 hand 1 point is worth 1 US dollar, the profit and loss of this transaction = 10 * 550 * 1 = 5500 US dollars, if the exit ** is 152851, then the profit and loss at this time becomes 5510 US dollars, according to the first algorithm or 5500 US dollars, so the trading software is displayed according to the second algorithm of the profit and loss value, is accurate.