To calculate the transaction size for gold, we need to take into account the following details:
To calculate the volume of the trade we will take into account the following conditions:
- free margin (1,000 RUR)
- leverage (1:100)
Convert RUR to USD
For that, account balance = 1,000 RUR we divide by the current exchange rate of the USD/RUR = 23.6550 =>10,000/23.6550 = 42.27 USD. (If you have US dollar account, you can skip this step.) The result in USD we multiply by the leverage => 42.27*100 = 4,227 USD
1 lot = 100 troy ounces. To calculate the cost of one lot we should multiply 100 by the current price per ounce of GOLD (for example 952.70 USD) => 952.70 * 100 = 95,270 USD.
To calculate the volume of trade we should divide our free margin considering the leverage to the trading volume.=>
trade V = 4,227 USD/95,270 USD = 0.04 lot.