XM (XMTrading): How much is one lot of XM Bitcoin? Latest explanation of profit and loss calculation method

XMTrading

XM (XMTrading): How much is one lot of Bitcoin at XM? We’ll explain the latest profit and loss calculation method. Since this is a company that also allows trading of virtual currencies, let’s calculate how much it will actually cost.

XMtrading

Operating companyTradexfin Limited
Fintrade Limited
Head office locationUnit E, F28, Eden Plaza, Eden Island, Republic of Seychelles
Founding year2009
Financial License(FSA)SD010:Tradexfin

Mauritius Financial Services Commission (FSC:):Fintrade Limited

Cyprus Securities and Exchange Commission (CySEC):Trading Point of Financial Instruments Ltd
Language supportEnglish、日本語、Malay、Thai
PlatformMetaTrader 4 (MT4)/MetaTrader 5 (MT5)
Service CountriesOver 190 countries
Number of usersOver 1 million accounts
Max Leverage1000x
Eligible productsForex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency

XM Bitcoin Trading Lot Size Basics

This article provides an easy-to-understand explanation of the basics of lot sizes when trading Bitcoin (BTC/USD, etc.) on XMTrading (XM). The official website also features a calculator that shows the amount of pips, size, and swap points. You can also place orders by lot size for stock indexes, precious metals, stocks, gold, and foreign exchange.

1️⃣ What is lot size?

  • Lot size = Trading volume
  • In FX and CFDs, “1 lot” means “trading unit.” This format is usually applied.
  • At XM, the “quantity per lot” is determined by the currency pair. It’s very easy to calculate using 1 dollar.

2️⃣ XM Bitcoin (BTC/USD) Trading Unit

Here’s what XM’s Bitcoin CFDs look like:

Account TypeBTC amount per lot
Standard Account1ロット = 1 BTC
Micro Account1ロット = 0.01 BTC
Zero Account / Kiwami Account1ロット = 1 BTC

*Please check the XM platform for handling of BTC/JPY etc. Basically, “1 lot = 1 BTC (standard account)” is the basic rule.


3️⃣ Minimum and maximum lot size

    Minimum Lot

    Standard Account: 0.01 Lot (=0.01 BTC)

    Micro Account: 0.01 Lot (=0.0001 BTC)

    Maximum Lot

    Standard Account: Up to 50 Lots

    Micro Account: Up to 50 Lots

    In reality, the number of tradable lots will vary depending on your account balance and leverage.


    4️⃣ Relationship between lot size and required margin

    XM’s BTC trading is CFD format, so margin is calculated as follows: BTC price × lot size ÷ leverage.

    Example: BTC/USD = $30,000, 1 lot (1 BTC), 100x leverage: Required margin = 30,000 ÷ 100 = 300 USD Required margin = 30,000 ÷ 100 = 300 USD Required margin = 30,000 ÷ 100 = 300 USD

    Increasing leverage reduces required margin.

    Conversely, increasing lot size increases required margin.


    5️⃣ Trading precautions

    1. High Volatility
    2. BTC’s price fluctuates greatly, resulting in large profits and losses even when trading in single-lot increments.
    3. Beware of Leverage
    4. Trading with high leverage can result in large profits or losses even with small amounts. This depends on whether the product is 500x or 1000x.
    5. Start with Small Lots
    6. Beginners are recommended to practice with a micro account or 0.01 lot increments.
    7. Check Spreads and Fees
    8. Bitcoin trading has wider spreads and higher trading costs than FX.

    How to calculate XM Bitcoin lot size

    For reference, we will explain how to calculate lots, which is important in the Bitcoin (BTC/USD, etc.) market, on XMTrading (XM). The methods for calculating lots are as follows. Please log in to check the details. Let’s take a look at the effective lot size of the BTC/USD you hold.

    1️⃣ Basic formula

    XM Bitcoin is traded as a CFD, so margin requirements can be calculated using the following formula:

    Margin Requirements = BTC Price x Lots / Leverage

    BTC Price: Current BTC/USD price

    Lots: Trading volume (e.g., 1 lot = 1 BTC, depending on your account type)

    Leverage: The leverage ratio selected for your account


    2️⃣ Lot size for each XM account type

    Account Type1ロットあたりのBTC量
    Standard Account1 BTC
    Micro Account0.01 BTC
    Zero Account /KIWAMI Account1 BTC

    Example: If you buy “0.1 lot” with a standard account → trading volume of 0.1 BTC


    3️⃣ Calculation example

    Example 1: Standard account, BTC/USD = $30,000, 100x leverage, 0.1 lot trade

    Required margin = 30,000 × 0.1100 = 3,000100 = 30 USD

    • 0.1 lot = 0.1 BTC traded with 100x leverage → Required margin 30 USD

    Example 2: Micro account, BTC/USD = $30,000, 50x leverage, 1 lot traded (0.01 BTC)

    Required margin = 30,000 × 0.0150 = 30050 = 6 USD

    • 1 lot = 0.01 BTC traded with 50x leverage → Required margin 6 USD

    4️⃣ Important points and precautions

    1. The basic formula is lot size × BTC amount × current price ÷ leverage.
    2. Increasing margin increases security (stop-loss and market volatility).
    3. Bitcoin’s price fluctuates greatly, so it’s safer to start with small lots.
    4. Micro accounts allow for small trading amounts and are suitable for beginners.

    5️⃣ Practical advice

    • First, practice with small trades of 0.01–0.1 lots on a demo account.
    • Margin calculations are automatically displayed on the MT4/MT5 order screen, so take advantage of this.
    • High leverage and large lots can quickly result in large losses, so be careful.

    XM Bitcoin trading profit and loss calculation

    We’ll explain how to calculate profit and loss on Bitcoin (BTC/USD, etc.) on XMTrading (XM), from the basics to specific examples. Please see below. The content services are the same for both Ethereum and Bitcoin. This will provide you with concrete investment knowledge.

    1️⃣ Basic formula for calculating profit and loss

    In Bitcoin CFD trading, profit/loss is calculated as trading volume x price fluctuation.

    Profit/loss (USD) = (settlement price – opening price) x trading volume (BTC)

    Entry price: The price at the time of purchase/sale

    Exit price: The price at the time of settlement

    Trading volume: Number of lots x BTC per lot

    2️⃣ Specific examples of profit and loss calculations

    Example 1: Buying BTC/USD with a Standard Account

    • Account Type: Standard Account
    • Lot Size: 0.1 Lot (0.1 BTC)
    • Opening Price: $30,000
    • Settlement Price: $31,000

    Profit and loss=(31,000−30,000)×0.1=1,000×0.1=100 USD

    • Profit: 100 USD

    Example 2: Buying BTC/USD with a Micro account

    • Account Type: Micro Account
    • Lot Size: 1 lot (0.01 BTC)
    • Opening Price: $30,000
    • Settlement Price: $29,500

    損益=(29,500−30,000)×0.01=−500×0.01=−5 USD

    • Loss: 5 USD

    3️⃣ Points that affect profit and loss

    Lot Size

    The larger the lot size, the greater the profit/loss even with the same price movement.

    Difference between opening price and closing price (price fluctuation)

    BTC is highly volatile and can fluctuate significantly over a short period of time.

    Trade Direction

    Buy (Long): Closing price > opening price → Profit

    Sell (Short): Closing price < opening price → Profit

    4️⃣ The impact of leverage

    While the above formula is sufficient for calculating profit and loss, leverage affects fluctuations in required margin and account balance.

    Higher leverage → Larger lots with smaller margin → Larger profits and losses.

    XM has a zero-cut system, so there’s no margin call, but your balance could potentially drop to 0 yen.

    XM Bitcoin Trading FAQ

    Below we have compiled a list of frequently asked questions (FAQs) about XM’s Bitcoin (BTC/USD, etc.) trading. It covers everything from the basics of Bitcoin CFD trading to important points to note.

    Q1. What account types can I use to trade Bitcoin with XM?

    You can trade with Standard, Micro, Zero, and Ultra Low accounts.

    The amount of BTC per lot varies depending on the account type:

    Standard/Zero Account: 1 lot = 1 BTC

    Micro Account: 1 lot = 0.01 BTC


    Q2. What are the minimum and maximum lot sizes?

    • Minimum lot size: 0.01 lots (for both standard and micro accounts)
    • Maximum lot size: 50 lots (limited by account balance and leverage)

    Q3. How much leverage can I use?

    • Bitcoin allows for a maximum leverage of 1:50.
    • (Leverages like 1:888 or 1:1000, like those for FX currency pairs, are not allowed.)
    • Higher leverage allows for larger positions with smaller margin, but also increases the risk of loss.

    Q4. How do you calculate profit and loss?

    P/L (USD) = (Settlement Price – Entry Price) x Trading Volume (BTC) P/L (USD) = (Settlement Price – Entry Price) x Trading Volume (BTC) P/L (USD) = (Settlement Price – Entry Price) x Trading Volume (BTC)

    Trading Volume = Number of Lots x Amount of BTC per Lot

    Profits and losses are reversed depending on whether you’re long or short.


    Q5. How much margin is required?

    Required margin = BTC price × number of lots Leverage Required margin = \frac{\text{BTC price} × \text{number of lots}}{\text{leverage}} Required margin = Leverage BTC price × number of lots

    Example) BTC/USD = $30,000, 1 lot (standard account), 50x leverage → Required margin = $600


    Q6. Are there any spreads or fees?

    • Bitcoin CFDs are based on a spread system, and trading fees may apply separately.
    • Please check with MT4/MT5 or the official XM website before trading.

    Q7. What are the trading hours?

    • Bitcoin CFDs are traded five days a week (Monday through Friday), not 24 hours a day, seven days a week.
    • Trading hours may vary due to platform or server maintenance.

    Q8. Can I use automated trading (EA) with XM?

    • If your platform is compatible with MT4/MT5, you can use an EA for automated trading of Bitcoin.
    • However, due to high volatility, you need to carefully configure the EA parameters.

    Q9. Can I trade BTC with a demo account?

    • Yes, you can practice trading Bitcoin with a demo account under the same conditions as a real account.
    • Since you’re trading with virtual funds, you can try out trading methods and strategies risk-free.

    Q10. What should I be careful of during high volatility?

    • Bitcoin’s price fluctuates greatly, and can move by several percent in an hour.
    • Be careful, as if you make the lot size too large, you may lose your margin quickly.
    • Be sure to set stop-loss lines and risk management rules.

    コメント

    Copied title and URL