How are the units in a trade calculated?
To calculate the amount of units in a trade, please use the formula below:
[Amount invested] X [Leverage] / [Instrument’s price when position opened] / [USD exchange rate] = Units
The unit amount for BUY trades is calculated based on the BUY price. The unit amount for SELL trades is calculated based on the SELL price.
Instruments that are traded in US Dollars (such as USD currency pairs, commodities, cryptoassets and stocks traded on US exchanges) do not require a conversion and therefore the USD exchange rate value in the formula is 1.
Stocks on the London Stock Exchange are traded in pence rather than pounds. To calculate the amount of units in a London stock trade, use the formula above and multiply the result by 100.
An instrument traded in US Dollars:
- A BUY Gold trade with $1,000 invested and x10 leverage opened at a BUY price of $1750.00 = 5.71 units
An instrument traded in Euros:
- A SELL VOW3.DE trade with $1,000 invested and x2 leverage opened at a SELL price of $188.00 with a EUR/USD rate of $1.17000 = 9.09 units
A stock on the London Stock Exchange:
- A BUY LLOY.L trade with $1,000 invested and x2 leverage opened at a BUY price of $45.00 with a GBP/USD rate of 1.37000 X 100 pence = 3,244.12 units