If a broker website states that the minimum position size is 0.01 lots, how does this translate for cryptocurrency? For example, what would the minimum position size would be, in USD, if trading BTC?
Also, can minimum position size be achieved with leverage, or do the minimum lot size amounts have to come from your available account balance before leverage is applied?
Thanks.
How To Calculate Pips For Bitcoin. Scroll down to post 11 that should help. Different bitcoin exchanges give different prices. but also look at the contract specification fot that instrument for more info like swaps etc… Also.
My advice would be stick with the Major currencies and instruments that you can work out… bitcoin is a bit suspect in my honest opinion.
Hello. Thank you for the information. I am having trouble trying to wrap my head around the referenced post. For example, how can I determine lot size based on the information that was provided in that post?
I apologize, as I am not used to working with lot sizes. The concept seems straightforward enough, except as it relates to crypto assets. Coming from crypto exchange trading, speculative trading uses contracts where 1 contract is equivalent to 1 USD.
Thanks, again.
Use your demo account to open the smallest size allowed then measure the amount of points it moves and compare it to your profit or loss . Not forgetting to take off the spread. What broker do you use.? Why do you want to trade bitcoin ? The spreads alone would put me off. Why not just stick to The fx majors with low spreads and indexes or gold, oil ?
Hello, again. Thank you for replying.
I have not decided on a broker yet; I am looking around for a good broker that can service US residents. In order to do that effectively, I am trying to gather a better understanding about some of the things that are new to me. Since I have not selected a broker, I also have not selected where to set up a demo account, and I am unable to check some of these things for myself. Although, I suppose, if you have any information regarding demo trading accounts that do not have any KYC requirements, that would also allow me to trade crypto, then I may be able to figure some of these things out on my own. My hope was that someone could help me to save time by allowing me to avoid going that route.
To answer your other questions, I actually want to trade alt coins because the volatility is much greater and the allowable leverage for various alt coins provided by crypto exchanges is slim-to-none. That being said, I really just want the option. I still want to trade FX, but I also want to be able to trade crypto. The spread for crypto actually isn’t that bad, from what I’ve seen, depending on which broker you choose.
Thanks for your help!