You can calculate the maximum allowed lot size on a certain pair using a simple formula based on your account size and the leverage for that asset class.
Formula: (Account Balance × Leverage) ÷ (Instrument Price × Contract Size) = Max Lot Size
What the formula uses
Term | Meaning |
Account Balance | Your trading account balance |
Leverage | The specific ratio for the asset class |
Instrument Price | The price of the instrument/pair |
Contract Size | The value of one lot (e.g., $100,000 for FX) |
Contract sizes
Contract sizes may vary across platforms.
Asset class | Contract size |
Forex pairs | 100,000 |
Metals | 100 |
Indices | 10 |
Crypto | 1 |
Example 1: Forex with 10:1 leverage (1-Step FLASH Funded and Instant Funding)
Input | Value |
Account Balance | $10,000 |
Leverage | 10:1 |
Instrument Price | 1.14763 (using the price of EURUSD) |
Contract Size | 100,000 |
Calculation | (10,000 × 10) ÷ (1.14763 × 100,000) = 0.87 lot |
You can trade a maximum of 0.87 lot on EURUSD.
Example 2: Metals with 10:1 leverage (2-Step PRO Challenge)
Input | Value |
Account Balance | $10,000 |
Leverage | 10:1 |
Instrument Price | 3,366 (using the price of XAUUSD) |
Contract Size | 100 |
Calculation | (10,000 × 10) ÷ (3,366 × 100) = 0.29 lot |
You can trade a maximum of 0.29 lot on XAUUSD.
Why are these leverage ratios important?
Risk management: Helps you understand your maximum exposure when opening a position.
Position control: Allows you to determine the appropriate lot size based on the instrument and account size.
Consistency: Helps you maintain consistent position sizing across different instruments.
By understanding contract sizes and how to calculate your maximum tradable lot size, you can better manage your exposure and maintain disciplined trading practices.
For any questions or assistance, feel free to contact our support team at [email protected].