What is the contract size for trading assets?
FHX Markets uses a contract size of 10 for applicable trading assets. This means that when a trader opens a position of 1.00 lot, the position represents 10 units of the underlying asset.
Position Size Examples
1.00 lot = 10 units
0.50 lots = 5 units
0.10 lots = 1 unit
0.01 lots = 0.10 units
The contract size directly affects the position's exposure, margin requirements, profit, and loss.
Profit and Loss Calculation
A simplified calculation is:
Price Movement × Contract Size × Lot Size = Profit or Loss
For example, if an asset moves by $1.00 and the trader has a 1.00-lot position, the approximate profit or loss would be:
$1.00 × 10 × 1.00 lot = $10.00
For a 0.10-lot position, the same $1.00 movement would result in an approximate profit or loss of:
$1.00 × 10 × 0.10 lots = $1.00
Actual profit, loss, margin, and trading costs may vary depending on the specific instrument, account currency, market price, spread, commission, swap fees, leverage, and trade direction. Traders should review the instrument specifications displayed on their trading platform before opening a position.