Trader Lab · Technical analysis
FxPro. Japan
Lot size and margin level: decide what you can lose first
Position size should come from your stop distance and the amount you are willing to lose on one trade, not from gut feeling. At FxPro, as at many international brokers, one lot is 100,000 units, ten times the standard lot at many Japanese domestic brokers.
75%+ of retail investor accounts lose money trading CFDs.
How big is one lot
On FxPro MT4 and MT5 one lot of a currency pair is 100,000 units. Many Japanese domestic brokers use 10,000-unit lots, so the same "1 lot" is a very different trade.
| Lots | Units | USDJPY, value of 1 pip (0.01 yen) |
|---|---|---|
| 1.00 | 100,000 | 1,000 yen |
| 0.10 | 10,000 | 100 yen |
| 0.01 | 1,000 | 10 yen |
The sizing formula
Lots = amount at risk ÷ (stop distance in pips × pip value per lot)
Example: with a 500,000-yen account and 2% risk per trade (10,000 yen), a 25-pip stop on USDJPY gives 10,000 ÷ (25 × 1,000) = 0.4 lots. Widen the stop to 50 pips and the size drops to 0.2. Stop and size are always decided together.
Dollar pairs
For pairs quoted in dollars, such as EURUSD, one lot moves 10 dollars per pip. Multiply by USDJPY to get yen: at 150, about 1,500 yen per pip.
Required margin
Required margin = units × price ÷ leverage
One lot of USDJPY at 150 needs 100,000 × 150 ÷ 500 = 30,000 yen at 1:500, or 600,000 yen at 1:25, the cap for Japanese domestic brokers. FxPro leverage depends on the entity, account and instrument, so check your own account terms rather than the maximum.
Margin level
Margin level (%) = equity ÷ used margin × 100
Equity of 500,000 yen with 30,000 yen used gives about 1,667%. As losses grow the level falls; at the broker's margin call level you get a warning, and lower still positions are closed automatically (stop out). The levels are set per account, so look them up in your account terms.
Is there a safe margin level
No single number is safe. Size so that hitting your stop still leaves plenty of room, and add up the stop losses of all open positions. Stop out is the last safety net when a stop fails, not a replacement for one.
Setting the stop: how to set a stop-loss. Gold sizing: trading gold.
Questions
How much margin does 0.01 lot need?
At USDJPY 150 and 1:500 leverage, 0.01 lot (1,000 units) needs about 300 yen. The leverage you can use depends on your account terms.
Do I need a lot size calculator?
The formula works on any calculator. If you use a tool, check how many units it assumes per lot; tools built for Japanese domestic brokers often assume 10,000.
What margin level should I keep?
There is no fixed answer. Work out the loss at your stop first and size so the margin level stays comfortable even after that loss.