Calculating Lot Size

Calculating Lot SizeLesson 10 of 124 min read

One size per market

A fixed size does not travel between products, which is one more reason to trade a single market, and the condition for using the method at all.

Two limits on the fixed size before this module hands it to you.

The size does not travel

Stop widths come from how a market moves, and every market moves differently.

The 0.05 lot worked out for gold means nothing on bitcoin. Bitcoin stops are measured in hundreds of dollars and its contract size is 1 rather than 100, so the whole calculation restarts.

A fixed size belongs to one market, and it is worked out again for the next one.

Which is another argument for one market

Module 29 already put one market in your plan. This is a second reason for it.

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