{"id":403587,"date":"2021-04-30T12:11:37","date_gmt":"2021-04-30T10:11:37","guid":{"rendered":"https:\/\/ftmo.com\/?p=403587"},"modified":"2024-10-18T11:48:05","modified_gmt":"2024-10-18T09:48:05","slug":"trading-crypto-and-indices-examples-explained","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/trading-crypto-and-indices-examples-explained\/","title":{"rendered":"Trading Crypto and Indices: Examples Explained"},"content":{"rendered":"
Trading Cryptocurrencies and Indices can be tricky from time to time as there are different specifications for different instruments. In this article, we will take a look at some different nuances that every trader should know about trading Cryptocurrencies and Indices.<\/em><\/p>\n It is a standardized amount that tells buyers and sellers the exact quantities that are being bought or sold based on predetermined terms.<\/p>\n Most of the cryptocurrencies on the FTMO-Server have a contract size of 1, which means that each contract is worth $1 of the selected instrument (XRPUSD and ADAUSD have a contract size of 100, DOTUSD has a contract size of 10, and DOGEUSD has a contract size of 1,000). A $1 price change on a cryptocurrency would result in a $1 change in the PnL position as well. For example, if the selected cryptocurrency has a contract size of 10, if you own 1 contract, a price change of 1 point would result in a PnL change of the position which is 10 times the amount denominated in the margin currency of the instrument.<\/span><\/p>\n <\/a><\/p>\n All indices at FTMO have a contract size of 1 (depending on the margin currency*).<\/p>\n * The margin currency of the instrument can be found in the \u201cSpecifications\u201d tab in the trading platform.<\/p>\n <\/p>\n <\/a><\/p>\n A unit of price change as a whole digit. If an asset worth $100 rises to $101, that is an increment of 1 point.<\/p>\n The value of a point based on the contract size of the instrument.<\/p>\n BTCUSD<\/strong>\u00a0has a point value of\u00a0 $<\/span>1\/point (contract size = 1, profit currency = USD) where 1 point is defined as the 1st digit before the fractal comma.<\/p>\n US30.cash<\/strong>\u00a0has a point value of\u00a0 $<\/span>1\/point (contract size = 1, profit currency = USD) where 1 point is defined as the 1st digit before the fractal comma.<\/p>\n Leverage allows you to trade with more money than you have on your account.<\/span>\u00a0FTMO offers maximum leverage of 1:100 on all account types. The margin requirements on individual instruments may vary. The exact specifications can be checked on the platform or at https:\/\/ftmo.com\/en\/symbols\/<\/a>.<\/p>\n In order to open and maintain a leveraged trade, you need to have a certain amount of money on the account. It is called margin<\/strong><\/a>. The higher the leverage you have on your account, the smaller the margin you will have to provide. You need to check the margin requirements in the Specification of the instrument in order to calculate the necessary margin.<\/p>\n <\/a><\/p>\n Margin percentage 100% -> 1:100 \/ 100% = leverage 1:100<\/p>\n Margin percentage 200% -> 1:100 \/ 200% = leverage 1:50<\/p>\n Margin percentage 333% -> 1:100 \/ 333% = leverage 1:30<\/p>\n Margin percentage 3,000% -> 1:100 \/ 3,000% = leverage 1:3.3<\/p>\n <\/p>\n At FTMO, the following formula is used for the calculation of margin for CFDs:<\/p>\n Margin = Lots * Contract size * Price of the instrument \/ Leverage of the account<\/strong><\/p>\n Symbol<\/strong>: US30.cash Margin =<\/strong>\u00a0 <\/strong>2 (number of lots) * 1 (contract size) * $34,427 (price of the instrument) \/ 50 (leverage) = $1,377.11<\/strong><\/p>\n In order to buy 2 lots of US30.cash, you will need at least $1,377.11 to open the position.<\/p>\n In case your account has insufficient margin, the order will be rejected and you will receive a \u2018not enough money\u2019 alert.<\/p>\n If you have a different account currency than USD, you need to adjust the result at the current exchange rate. Therefore, the margin required on the GBP account will be \u00a31,051.74<\/strong>\u00a0(1,377.11\/1.30936).<\/p>\n This is similar if you are opening a position on an instrument whose margin currency is different from USD but you have a USD account (see examples below).<\/p>\n In order to improve our services to our clients, we have launched a Margin Calculator<\/a> in the Client Area, thanks to which you no longer have to calculate the required margin manually.<\/p>\n When you buy or sell an instrument, you do that through a broker\/provider. The broker\/provider charges you a transaction fee whenever you open a trade. In FTMO, commissions for currency pairs are $3\/lot, for metals and equity CFDs they are based on percentage\/volume. Equity CFDs have a commission of 0.0040% per lot, metal CFDs (XAG, XAU, XPT and XPD) have a commission of 0.0010% per lot. For indices (cash CFDs including USOIL and UKOIL), cryptocurrencies and futures CFDs, no commission is charged by the FTMO.<\/strong><\/p>\n The calculation for the commission is as follows:<\/p>\n Commission = Contract size * lots * Price of the instrument\u00a0* Commission in %<\/strong><\/p>\n The commission specifications for each instrument can be found here: https:\/\/ftmo.com\/en\/symbols\/<\/a>.\u00a0<\/span><\/p>\nContract size<\/h2>\n
Cryptocurrencies<\/h3>\n
Indices<\/h3>\n
Point<\/h2>\n
Point value<\/h3>\n
Leverage and margin<\/h2>\n
Example:<\/h3>\n
\nLeverage<\/strong>\u00a0of the account<\/strong>: 1:50
\nContract size<\/strong>: 1
\nNumber of lots<\/strong>: 2<\/p>\nCommission<\/h2>\n