CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

76.09% of retail investor accounts lose money when trading CFDs with this provider.

How to calculate the size of a position (Forex)

For Forex, this depends on the contract size you are trading. Currencies are usually traded in lots. A standard lot is 100,000 units of the base currency, which is the first currency in the quote – i.e. GBP in the case of the GBPUSD pair.

If the GBPUSD pair is trading at 1.2821 and the price rises to 1.2822, it has risen by 1 pip. But how much is a pip worth, and what is the total value of a position?

So, a standard lot for this pair would be GBP 100,000, worth USD 128,210.

Fortunately, you can also trade mini lots which are 10,000 units and even micro-lots which are 1,000 units. In the above example, a mini lot would be worth USD 12,821 and a micro lot would be worth USD 1,282.10.

For a standard lot, the pip value is $10; for a mini lot, it is $1; for a micro lot, it’s $0.1.