The international foreign exchange market stipulates that the underlying value of a standard foreign exchange contract is 100,000 US dollars in base currency. In the case of 100 times leverage, a margin of 1,000 US dollars is required. When trading precious metal gold, a standard contract refers to trading 100 ounces, trading silver refers to 5,000 ounces, and trading crude oil refers to 1,000 barrels. They all represent a standard contract. So, the editor of Global Financial Exchange will introduce to you how to calculate the foreign exchange standard contract.

The standard number of contracts in foreign exchange transactions is the transaction volume itself, the amount of currency bought/sold, and the contract unit is the unit of calculation for the amount of foreign exchange traded. The number of lots is also a calculation method of trading volume. In foreign exchange, one standard lot is a contract volume of 100,000 (100,000), also called 100K.

If the contract unit is selected as 10K, it means that the minimum transaction share of each order is 10,000 base currencies; if the contract unit is selected as 0.1K, it means that the minimum transaction share of each order is are 100 base currencies.

The contract unit refers to the quantity bought and sold in one foreign exchange contract. The contract unit of 1 foreign exchange contract is 100K base currency. For example: the contract unit of 1 lot of EUR/USD is 100,000 euros, and the contract unit of 1 lot of GBP/JPY is 100,000 pounds. Internationally, "K" is used as 1,000 U.S. dollars or "thousand U.S. dollars" to represent the total amount of funds in a trading contract.

For example: a 100K contract account is 100 "thousand dollars". A 100K account such as a 100,000 dollar account is also called a "standard account". A 10K contract account is 10 "thousand dollars". A 10K account such as a 10,000 dollar account is also called a "mini" account. There is a MINI account called a "professional account" which is 250K, which means that the amount of funds is 25 Thousands of dollars

Some companies also set up some "intermediate" accounts, such as the 50K account, which means that it is between the standard and mini accounts.

The above content is the details of how to calculate the foreign exchange standard contract. If you want to know more details about foreign exchange knowledge, you can consult FP Markets official online customer service, web link