trading with oanda

[olweiser]

I'm sure some of you trade with them. I need a little help with some of the functionality.

Trades are made units: why is this, and how do I know how much this translates to in money?

 

[VielGeld]

A "unit" is the lowest possible size you can get on a given asset.

If trading currencies, then 1 unit = 1 pip.

If trading, say, the SP500, then 1 unit = current price. Right now, the SP is at 1770, so 1 unit would be equivalent to $1,770. You would then need $1,770 to purchase one unit, or less if using leverage.

 

[tar]

http://fxtrade.oanda.com/analysis/profit-calculator/

 

[olweiser]

Thanks all,
I'll have to soak up this info and play around. Seems more complicated. The calculator is good place to go but doesn't allow me to work out the true value of the units/actual cost of trade.

 

[tar]

Thanks all,
I'll have to soak up this info and play around. Seems more complicated. The calculator is good place to go but doesn't allow me to work out the true value of the units/actual cost of trade.

What you mean ? They have a margin calculator as well and an IR calculator . 1 unit of GBP/USD is just 1 pound , a microlot is 1000 units , mini = 10K units , standard lot = 100K units .

 

[olweiser]

What you mean ? They have a margin calculator as well and an IR calculator . 1 unit of GBP/USD is just 1 pound , a microlot is 1000 units , mini = 10K units , standard lot = 100K units .

Gotcha, that makes it more clear. Does that mean that 1 unit in, lets say EUR/USD = 1euro? and a microlot of 1000 units = 1000 euros, etc.

 

[tar]

Gotcha, that makes it more clear. Does that mean that 1 unit in, lets say EUR/USD = 1euro? and a microlot of 1000 units = 1000 euros, etc.

Exactly . But margin requirements with Oanda is 2% for popular FX pairs .

And if you trade 1000 units of EUR/USD then 1 pip move = 10 US cents .

And so on . Take a peek at their demo account ...

 

[tar]

BTW if you use Oanda's MT4 then you will be trading in lots - like other brokers - not in units ...

 

[olweiser]

BTW if you use Oanda's MT4 then you will be trading in lots - like other brokers - not in units ...

why, as an end use would I want to trade in lots?

 

[tar]

why, as an end use would I want to trade in lots?

They have 2 platforms :

FXtrade = you will trade in units minimum 1 unit ... etc .

MT4 = normal , you will trade in lots , minimum 1 micro lot = 0.01 lot .