Hello, I am Cyper and today I am going to explain what is lot size and margin rate in PCEX Futures.
When you login to PCEX Futures and look at the Buy and Sell box you will find lot size and margin rates. But, what does that mean?
In PCEX Futures, contracts of currency pairs are traded in what we called lots.
A lot size represents the total number of quantities contained in one future contract you are buying or selling. If we are taking an example of BCH/C2USD contract, then 1 lot size represents 200 quantities of BCH.
This means that if the price of 1 BCH is 416.88 C2USD then 1 BCH/C2USD contract consists of a lot of 200 BCH priced at 200 x 416.88 = 83,376 C2USD.
But, when you are trading in futures, you do not need to pay the entire amount. The exchange usually sets initial margin requirements as low as 5% to 10% to enable traders to buy a futures contract.
For example, if the 1 lot size of BCH/C2USD futures contract is quoted at 83,376 C2USD, you can buy a contract by paying only 5% of the contract value i.e. 4,168.8 C2USD.
Now you know what is a Lot Size and the Margin Rate.
Leave a Reply