What is the difference between lot size and leverage?

The lot size is the fixed number of units of the stocks, Exchange Traded Funds (ETFs), options, futures, or forex currencies. In contrast, leverage is the amount taken from the broker to invest in the capital market, and the returns on the capital are paid off as a loan. It is the smallest amount of units of security that can be traded.

What are common lot sizes?

The following is a list of common lot sizes and the corresponding number of currency units that you are in fact buying or selling. 1 STANDARD lot represents 100,000 units of currency. 1 MINI lot represents 10,000 units of currency. 1 MICRO lot represents 1000 units of currency.

What is leverage & how does it work?

Think of leverage as your broker lending you the $100,000 so you can trade standard lot sizes. Your $1,000 account is what’s known as margin, and can be seen as a good faith deposit while you are using their money to trade standard lot sizes.

How much leverage does Vantage have?

At Vantage, a standard account has leverage of 100:1. This means that for every $1,000 in your trading account, you are actually able to control $100,000 of currency. Think of leverage as your broker lending you the $100,000 so you can trade standard lot sizes.