Lesson 5 of 7 · 7 min
Contract sizes and margin on each asset
Read a contract specification, then work out money per move, margin and a position size for gold, oil and index CFDs with the same four formulas.
By the end you'll be able to
- Find the contract size, tick, minimum lot, margin rate and swap in a contract specification
- Work out money per move and margin for gold, oil and an index at any leverage
- Size a position on any of them from a fixed risk and the stop distance
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“0.10 lots” is the same three words on every instrument in your platform. On gold, oil and an index it means three very different amounts of money.
Same ticket, different money
| 0.10 lots of… | Typical contract (1 lot) | Per one-unit move | Position value | Margin at the retail cap |
|---|---|---|---|---|
| Gold at $4,000 | 100 oz | $10 per $1 | $40,000 | $2,000 (1:20) |
| WTI at $65 | 1,000 barrels | $100 per $1 | $6,500 | $650 (1:10) |
| US500 at 6,500 | $1 per point | $0.10 per point | $650 | $32.50 (1:20) |
| NAS100 at 24,000 | $1 per point | $0.10 per point | $2,400 | $120 (1:20) |
| DE40 at 24,000 | €1 per point | €0.10 per point | €2,400 | €120 (1:20) |
Prices are illustrative round numbers. Contract sizes are typical, not universal.
Every instrument has a contract specification page in your platform (in MetaTrader, right-click the symbol and choose Specification). The lines that matter:
- Contract size: how many ounces, barrels or how much money per point one lot is.
- Tick size and tick value: the smallest price step and what it is worth on one lot.
- Minimum lot and lot step: often 0.01 for gold and oil, sometimes 0.1 or 1 for indices.
- Margin rate or leverage: 5% is the same as 1:20.
- Swap long and short, the triple-charge day, trading hours and, on futures-based CFDs, the expiry date.
Four formulas for every asset
Money per move = Contract size × Lots
Position value = Price × Contract size × Lots
Margin = Position value ÷ Leverage
Lots = Money at risk ÷ (Stop distance × Contract size)If the instrument is priced in another currency, such as DE40 in euros, convert the money at the end. Round the lots down to the lot step, so the risk never ends up above your limit.
Try it
Instrument
Margin locked up Lost at the stop
Illustrative prices and typical contract sizes. Contract sizes, minimum lots and margin rates vary by broker: copy the figures from your own platform’s contract specification.
Change the contract size from 100 to 10 oz, as some brokers use, and watch the lots grow tenfold for the same $50; then move the leverage from 1:20 to 1:100 and see that only the margin changes.
Quick check
Quick check
Question 1 of 4
Gold at $4,000, 100 oz a lot. What margin does 0.05 lots need at 1:20?
Question 2 of 4
You raise the leverage on the same oil position from 1:10 to 1:50. What changes?
Question 3 of 4
WTI, 1,000 barrels a lot. $4,000 account, 1% risk, stop $0.80. What size?
Question 4 of 4
Your new broker's US500 is $10 per point per lot. You open 1 lot with a 40-point stop, as you did at a $1-per-point broker. What is at risk?
Go deeper: What is margin in forex? · Lot sizes explained · Position sizing in forex