Most cryptocurrency traders are conversant with trading in a whole currency, not a fraction.
For a change, Oanda has introduced an exchange that allows traders to transact in a fraction of a currency.
This article addresses everything you need to know about Oanda lot size.
What Lot Size does Oanda Use?
With Oanda, you don’t have to worry about trading with an actual lot of a currency but can trade directly using fractions of the said currency, called units.
1 unit of a currency is the lowest value tradable in the industry. It refers to 1 unit of the base currency under consideration. For instance, consider USD. 1 unit means 1 USD.
Oanda Lot Size vs. Other Brokers
Oanda’s unit is a rarity in the industry because many brokers have no room for it but offer trading in standard lots.
A lot is the unit used to measure the amount of your operation. The different lot types are discussed below:
- A standard lot is 100,000 units of currency
- A Mini lot is 10,000 units of currency
- A micro lot is 1,000 units of currency.Micro lots are the smallest tradeable lot available to many brokers
- A nano lot is 100 units of currency.
It’s good to note that Oanda doesn’t measure CFD positions in lots but with the currency. No wonder it allows its traders to open trades for as low as the smallest unit of the currency the trader is comfortable with.
Thus, if the trader has a USD account, he/she can open positions as low as 0.01 USD.
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 simple-to-use tool is really helpful.
Follow the following process to use the Currency Pair Units Calculator:
- 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. The image below shows what information you need to use the tool:
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.