This seems like a question that would be so obvious but I CANNOT find a solid answer. How much money does it cost to buy a lot? To my understanding it is for a standard lot 100,000 units of the base currency. So for USD/JPY it would cost $100,000 US dollars? I might be completely wrong with this but I have not been able to find an answer to this on the internet. With stocks if you want to buy Tesla at 633.82, its pretty obvious that it costs 633 dollars and 82 cents. With currency lots I just can’t figure it out. Any help is greatly aprecciated.
For your example, with a USD/JPY trade and with a $300 account, if I bought this pair with 1,000 units it would cost me about $40. I’m poor so I only buy micro lots.
I’m a terrible explainer though so here’s a babypips link for your reference:
So basicly slide the coma to the left and that’s your raw estimate. But yes, the article provides a great formula for calculation.
Thats great thanks!