What is 1 lot of cryptocurrency equal to, features of determining transaction volumes for cryptocurrency pairs on Forex
Those who have been trading Forex for several days have long been accustomed to the fact that 1 lot of a currency pair is equal to 100,000 units of the base currency.
But new assets are constantly appearing on the trading platform, for example, cryptocurrencies, and every day their list is becoming larger and larger.
Cryptocurrency pairs are traded in lots, just like other assets, but unlike standard currency pairs, 1 lot here has different values depending on the selected asset.
This point sometimes causes difficulties for novice traders, because opening a new deal is quite difficult if you don’t know how much money it will require.
We can say that trading Ripple will require much less money than opening transactions on Bitcoin since the minimum volume in BTCUSD will cost $240, and in XRPUSD $3.77.
As you already understood from the picture above, you can see the size of the contract for the selected cryptocurrency in its specification .
It should be noted that the lot size may vary not only depending on the cryptocurrency, but also on the broker whose trading platform you trade on:
As you can see, in the first case, 1 lot of XRPUSD is equal to 1000, and in the second it is already ten times larger and amounts to 10,000 coins. Therefore, be careful and check the lot size with your broker.
Knowing what the lot is equal to, it will not be difficult for you to determine both the size of the planned transaction and the amount of funds, taking into account leverage, that will be needed for collateral.
For example, a transaction of 1 lot or 377 dollars in Ripple will require 75.40 dollars of collateral, and a transaction of 1 lot or 24,000 in Bitcoin with a similar margin percentage is already 4,800 dollars. But if you don’t have enough funds, you can always open a position with a fractional lot of 0.1 or even 0.01 lots.