Standard lots, mini lots and micro lots

[CPerry]

I have a question about lot sizes. From starting my research, I have come across the following terms:

Standard Lot, Mini Lot and Micro Lot.

Am I correct in assuming a standard lot is 10x quote currency so in GBP/USD, it would be $10 per pip?

A mini lot is 1x quote currency so in GBP/USD, it would be $1 per pip?

A micro lot is 1/10x quote currency so in GBP/USD, it would be $0.10 per pip?

 

If that is correct, what is the smallest type of lot I am allowed to use when trading forex with IG?

Can I use a micro lot for all currency pairs?

Can I trade with no leverage at all while I learn so each pip would only be $0.10 per pip or is there a baseline minimum level to these markets? Are all major currency pair markets the same?

TIA for your guidance,

CPerry.

[AndaIG]

Hi @CPerry

Thanks for reaching out, 

Yes the above is correct, the smallest contract we offer on the IG platform is a mini. However if you trade using MT4 you can trade micro-lots. You can find details on the available fx pairs from the following link: https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/products-markets-and-trading-hours/what-are-igs-forex-mt4-product-details

Unfortunately we only offer FX pairs on leverage, this cant be changed and is fixed by our desk on all pairs. 

All the best, 

Anda

 

[CPerry]

Thank you for clarifying Anda! I assume this is the same with MT5, being able to use micro-lots?

Do MT4/MT5 use different levels of leverage if I go through them or do IG set these fixed rates? If it is IG, do you know where I can find the leverage ratios for all the major pairs please? I tried searching myself:

https://www.ig.com/uk/charges/margin

But the above link only shows a handful. Do you know where I can find the leverage ratios for every currency pair IG allows me to trade?

Another little question too, is spread betting a type of CFD? I know there is a difference in how they are taxed so there must be a difference but i'm just trying to work out the vocabulary in this strange new world.

Thank you,

CPerry.

 

[CPerry]

https://www.axiory.com/trading-resources/strategies/no-leverage

Do some brokers offer no leverage? I'm still struggling to find a comprehensive list for all the currencies if anybody can help? 

 

[ArvinIG]

On 31/08/2022 at 00:14, CPerry said:

Thank you for clarifying Anda! I assume this is the same with MT5, being able to use micro-lots?

Do MT4/MT5 use different levels of leverage if I go through them or do IG set these fixed rates? If it is IG, do you know where I can find the leverage ratios for all the major pairs please? I tried searching myself:

https://www.ig.com/uk/charges/margin

But the above link only shows a handful. Do you know where I can find the leverage ratios for every currency pair IG allows me to trade?

Another little question too, is spread betting a type of CFD? I know there is a difference in how they are taxed so there must be a difference but i'm just trying to work out the vocabulary in this strange new world.

Thank you,

CPerry.

 

Hi @CPerry,

Thank you for your post. MT4 would use the same leverage as you would login using the IG-LIVE server. 
Unfortunately, we do not offer MT5 at the moment.

You can use this link for further details on margin requirements on forex pairs https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/products-markets-and-trading-hours/what-are-igs-forex-cfd-product-details
You can also open the IG web based platform and check the margin requirement on the deal ticket.

You can find a comparaison of Spread bet and CFD here:
https://www.ig.com/uk/spread-betting/spread-betting-vs-cfds


I hope that it helps !

All the best - Arvin

[CPerry]

Hi Arvin,

Thank you for clarifying that IG set the leverage rates, even if I use MT4. I checked out another thread where MT5 was discussed and understand it’s in the process so I’ll make a bot with MT4 and keep my eyes open for MT5 news.

There are two documents on that page you sent, ‘retail’ and ‘pro’, which would I be? Am I default retail until meeting a certain threshold? Where can I access information regarding what each of the columns mean in this document, or could I ask you to elaborate please? To narrow it down, I am English with a deposit of GBP in my account and I intend to start trading solely GBP/USD. I’m aiming to turnover quite a high daily frequency (hundreds of positions each day) with minimum microlots and leverage.

Thank you also for clarification on spread betting vs CFD!

Kind regards,

CPerry.

[ArvinIG]

On 02/09/2022 at 19:13, CPerry said:

Hi Arvin,

Thank you for clarifying that IG set the leverage rates, even if I use MT4. I checked out another thread where MT5 was discussed and understand it’s in the process so I’ll make a bot with MT4 and keep my eyes open for MT5 news.

There are two documents on that page you sent, ‘retail’ and ‘pro’, which would I be? Am I default retail until meeting a certain threshold? Where can I access information regarding what each of the columns mean in this document, or could I ask you to elaborate please? To narrow it down, I am English with a deposit of GBP in my account and I intend to start trading solely GBP/USD. I’m aiming to turnover quite a high daily frequency (hundreds of positions each day) with minimum microlots and leverage.

Thank you also for clarification on spread betting vs CFD!

Kind regards,

CPerry.

Hi @CPerry,

As default you will be under a retail account.
If you meet the elegibility criteria to have a professional account you will need to apply for it, you will then have different margin requirements as retail clients, more details here:https://www.ig.com/uk/professional

For GBP/USD you can refer to the link I sent previously : 

3.33% of the notional will be the margin requirement.

Thank you - Arvin

[CPerry]

Thank you Arvin!

You have been very helpful

CPerry.