What is 1 lot of cryptocurrency equal to? The specifics of determining trade volumes for cryptocurrency pairs on Forex
Those who have been trading on Forex for a long time 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, such as cryptocurrencies, are constantly appearing on the trading platform, and their list is growing every day.
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 beginning traders, because opening a new deal is quite difficult if you don’t know how much money it will require.
It can be said 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 can see from the image above, you can view the contract size for the selected cryptocurrency in its specifications .
It's worth noting that the lot size may vary not only depending on the cryptocurrency, but also on the broker whose trading platform you're using:
As you can see, in the first case, 1 lot of XRPUSD is equal to 1,000, while in the second, it's ten times larger, amounting to 10,000 coins. Therefore, be careful and check the lot size with your broker.
Knowing the lot size will make it easy for you to determine both the size of your planned trade and the amount of funds, taking into account leverage, that will be required as collateral.
For example, a 1-lot or $377 trade on Ripple requires $75.40 in collateral, while a 1-lot or $24,000 trade on Bitcoin, with the same margin percentage, requires $4,800. However, if you don't have enough funds, you can always open a fractional lot position of 0.1 or even 0.01 lots.
