Lots & what it's worth
What a lot is, and how it turns each price move into a dollar amount.
All steps
On the last page, a 100-point move on the Nasdaq 100 came to about US$100. This page shows the simple rule behind that figure, so your profit and loss stops feeling like a black box. We’re only covering the mechanics here, not how much you should put on.
What a lot is
- A lot is the bundle you trade in. You choose how many lots to buy or sell.
- The lot size is how many units of the instrument are packed into one lot. It’s a figure your platform shows you, in the order panel under “Order info”.
One lot is a different number of units on each market. As a rough guide:
| Market | Lot size of one standard lot |
|---|---|
| Shares | 1 (a single share) |
| Forex | 100,000 units of the currency |
| Gold | 100 ounces |
| Indices | set per index, and shown on your panel (the Japan 225 above is 100) |
What each move is worth
- Your units are your lots times the lot size. One lot of the Japan 225 is 100 units; a half lot, 50.
- Each unit is worth a dollar for every dollar the price moves.
- So your profit or loss comes down to your units times how far the price moves.
- On the Nasdaq 100, one lot is one unit, so it’s about a dollar a point: a 100-point move is roughly US$100. The rule is the same on every market; only the lot size changes.
1 unit
on a $1 move
$1
100 units
on a $1 move
$100
You can start tiny
- You don’t have to trade a full lot. A smaller lot holds fewer units, so it scales the result straight down.
- A 0.1 lot holds a tenth of the units, so it’s a tenth of the result.
- Pick a small lot to begin with and the numbers stay small while you find your feet.
Next we’ll look at leverage and margin, so the words your platform shows you stop being a worry.
Stuck anywhere? Message us on Telegram and we'll walk you through it.