To calculate the transaction size for CFD contracts, we need to take into account the following details:
- account balance (1,000 RUB).
Convert RUB in USD.
We should divide the account balance = 1,000 RUB by the current exchange rate USD/RUB = 23.6550 =>10000/23. 6550 = 42.27 USD (if your account currency is USD, you can skip this step). The result in USD is multiplied by the leverage (the standard leverage for stocks is 1:10) => 42.27*10 = 422,7 USD
To start with, we need to calculate the cost of 1 lot, which is equal to 100 stocks. We multiply 100 by the current price for 1 share in the InstaTrader platform (for example, 47 USD) => 100*47 = 4,700 USD.
For calculation of the trade size, it is necessary to divide account balance (with the leverage) by the trade volume =>;
Trade size = 422.7 USD / 4,700 USD = 0.08 lot.