Oanda uses a flexible lot size system that allows traders to execute positions as small as one unit of a currency, making it ideal for both beginners and experienced traders.
Unlike traditional brokers that enforce standard lot sizes of 1,000 (micro), 10,000 (mini), or 100,000 (standard) units, Oanda’s unique model lets traders customize trade sizes based on risk tolerance and strategy.
This flexibility is particularly beneficial for precise risk management and testing trading strategies in live market conditions. Additionally, Oanda provides a Currency Pair Units Calculator to help traders determine the exact trade size for their positions.
What Lot Size does Oanda Use?
Oanda allows traders to execute positions with as little as one unit of the base currency, offering unmatched flexibility compared to brokers that enforce fixed lot sizes.
In forex trading, 1 unit refers to a single unit of the base currency in a currency pair, meaning 1 USD in a USD-based pair or 1 EUR in an EUR-based pair. Unlike traditional brokers requiring 1,000 (micro), 10,000 (mini), or 100,000 (standard) units, Oanda’s fractional unit trading enables precise position sizing and risk management.
This feature is particularly useful for beginners testing strategies and experienced traders fine-tuning their positions.
How does Oanda Lot Size differ from Other Brokers?
Oanda stands out in the forex industry by allowing traders to open positions as small as one unit of the base currency, while most brokers require fixed lot sizes. Traditional forex lot sizes include Standard (100,000 units), Mini (10,000 units), Micro (1,000 units), and Nano (100 units), with Micro being the smallest available at most brokers.
Oanda’s flexible model lets traders place orders with any amount, down to a single currency unit, offering unmatched precision in position sizing. Unlike most brokers that measure CFD positions in lots, Oanda directly prices CFD trades in the underlying currency.
This flexibility enables traders to execute highly customized strategies and manage risk more effectively. For example, in a USD-based account, a trader can open a position as small as 0.01 USD with Oanda.
How to Use the Oanda Currency Pair Units Calculator?
Oanda offers the Currency Pair Units Calculator tool. You can use the tool to calculate the maximum number of units based on your margin. The steps to use the Oanda currency pair units calculator are listed below.
- Go to the Oanda’s website (73.5% of retail CFD accounts lose money). Here you’ll find Currency Pair Units Calculator. Start using it by entering the required parameters for the calculation.
- Select the base currency of your account. If your account’s base currency is the USD, choose it. Otherwise, select the currency you indicated you will be trading with.
- Choose the currency pairs you want to check. There are tons of currency pairs on the platform, choose whichever want to calculate. When you choose the currency pair, the currency price for the pair will be displayed in the Current Price section.
- Select the margin ratio. Here, specify the margin ratio by choosing from the available options.
- Then press ‘Calculate’ when you are done inputting the required parameters. As soon as you press this button, the calculator will do its job and give you the result. With the aid of this special calculator, you won’t have a hard time knowing the Oanda lot size you need for a transaction. You can tailor your transaction to suit that value. The image below shows what information you need to use the tool:
