This post will show you how to use our synthetic index lot size calculator. We will begin with an explanation of the inputs required to use this calculator and then walk you through how you use our lot size calculator to calculate a perfect lot size your trade.
What Is Lot Size In Synthetic Indices trading?
Lot size is a measure of the amount of an asset you want to buy or sell in a transaction. Higher lot sizes reflect higher potential profit (when you win the trade) or higher losses (if the trade goes against you).
Inputs Needed to use lot size Calculator
For you to use our Synthetic Indices Lot Size Calculator, you need to put three things in place: stop loss, entry price, and risk limit. When you input the above parameters, our calculator will help you determine a good lot size to use based on the information you provide.
(1). Stop loss price: This is the price level at which you intend to exit from your position in a trade.
(2). Entry price: This is the price at which you intend to enter a trade.
(3). Risk limit: This the maximum amount you want to risk in a trade.
How to use our Synthetic Indices Lot Size Calculator
Using this calculator is very simple. You just need to give it the required entry price, stop-loss price, and risk limit, and it will calculate the appropriate lot size for you.
In the image below, I have chosen the Boom 1000 index as the asset and input my stop loss as 547890.90, my entry price as 547931.50, and my risk limit as 200, and the calculator determined my lot size to be 0.203.