Trading volume (TV) refers to the amount of base currency a trader is trading. It is calculated using the following formula:
Trading volume (TV) = Number of lots x contract size
Example 1
An order to Buy 3 lots EURUSD.
TV = 3 x 100 000 EUR = 300 000 EUR
Example 2
An order to Sell 3 lots UKOIL.
TV = 3 x 1 000 BBL = 3 000 BBL
Trading volume is always calculated in the base currency.
Lot and contract size
Lot refers to the standard unit size of a transaction. A standard lot is typically equal to 100 000 units of the base currency (depending on the instrument).
The several lot types available include:
- Standard lot: 1 lot = 100 000 units
- Mini lot: 0.1 lot = 10 000 units
- Micro lot: 0.01 lot = 1 000 units
- Nano lot: 0.001 lot = 100 units
Contract size is a fixed value which denotes the amount of base currency in 1 lot. It varies based on the trading instrument.
You can see how to set volume in the photo below:
We wish you successful trading with ArtСap !
