Understanding Contract Size in Trading
What is Contract Size?
Contract size refers to the quantity of the underlying asset represented by one contract in trading. This size can vary depending on the specific symbol being traded, making it essential to understand how it applies to your trading strategy.
Why is Contract Size Important?
In Social Trading, where Autocopiers replicate the trades of Leaders, understanding Contract Size is crucial for ensuring accurate trade execution. Differences in Contract Sizes between Leader and Autocopier Accounts can influence the outcomes of copied trades.
For example, if a Leader and an Autocopier are using different Trading Group (such as a Zero Account versus a Standard Account), the Contract Sizes may differ. A Zero Account might feature a Contract Size of 50, while a Standard Account might have a Contract Size of 100. Being aware of these variations ensures that your trading aligns with the Leader’s strategy.
How to Identify the Account Type a Leader is Using:
- Melden Sie sich bei Ihrem Sozialer Handel Account: Access your Social Trading account by clicking the “Get Started” button on the right-hand side, selecting TradeQuo, and choosing either “Tradequo MT5” or “Tradequo MT4.” Enter your Trading Account ID as the username and your password, then click “Login.” Alternatively, you can navigate directly to the Social Trading Login Portal
- Find the Leader: Once logged in, locate the menu bar on the right-hand side of the page and click on “Leaderboard”. This will take you to a list of available Leaders. Use the ‘Find’ button on the left-hand side to search for the Leader whose trade signals you wish to copy. You can navigate directly to this link: Leaderboard —— If you can’t find your Leader on the Leaderboard, you can refer to this article: Wie finde ich einen Anführer, wenn er nicht auf der Bestenliste steht?
- View your Leader’s trading symbols: Once your Leader’s profile appears, locate the “Instruments” column, which is positioned above the Total profit and Return (total) sections. Here, you will see all the Trading Symbols the Leader has traded, listed next to the pie chart.
Example of the symbols that will appears:
- XAUUSD: 1
- AUDCAD.ecn: 46
- CADMXN-: 7
- CHFHUF#: 9
These symbols represent the positions the Leader has taken, along with the number of trades executed. It allows you to identify the Trading Group they belong to. From here, you can check if you and your Leader are in the same Trading Group. If not, you can compare the differences in Contract Sizes.
4. Review Contract Sizes: Visit the Spezifikationen page on the TradeQuo website to determine which Trading Group your Leader belongs to. Here, you can view the Contract Sizes of the Symbols across all different Trading Groups. Understanding these variations can help you refine your trading strategy.
Beispiel:
- Your Leader’s Trading Symbol: XAUUSD
As your Leader’s Trading Symbol is XAUUSD and you are unsure about the Trading Group and Contract Size, by checking the Spezifikationen section, it will help you identify the Trading Group your Leader is using, which in this case:
Your Leader has the Trading account in Standard group due to the suffix of the XAUUSD symbol (For example, in Standard group XAUUSD symbol doesn’t have suffix added). Once the trading account type is defined, you may be able to check the contract size of the specific symbols
5. Review Account Characteristics: When copying a Leader, consider the Trading Account they are using. Different Trading Group, such as Zero and Limitless Accounts, may have unique conditions that could affect the performance of your copied trades.
Symbols with Varying Contract Sizes
The following pairs may have different Contract Sizes:
- DJI30
- NASUSD
- SP500
- D40EUR
- XAUUSD
- XAGUSD
- UKOUSD
- USOUSD
- DJIUSD#
- NASUSD#
- SPXUSD#
- D40EUR#
- XAUUSD#
- XAGUSD#
- UKOUSD#
- USOUSD#
- And others…
For detailed information, please refer to the specifications and MT4/MT5 Symbol Specification section on the TradeQuo website.
Copying Trades Across Different Account Types
You can successfully copy a Leader even if your Trading Group differs from theirs. It’s important to recognize that varying account types may lead to differences in Contract Sizes, which can influence trade execution.
For Example:
Führer:
- Your Leader with a Standard Account opens 1 lot of XAUUSD with a Contract Size of 100
Auto-copier (You):
- You with a Zero Account, are having new trade 1 lot of XAUUSDs with a Contract Size of 50 , copied from trading signal of the Leader
- Subscription Strategy: Multiply, with Copied Volume of 1, based on Balance value (Let’s assume Leader balance and your balance as Follower are the same)
When your Leader opens 1 lot of XAUUSD, you will also open 1 lot because you have set the Subscription Strategy to Multiply. The copied volume is multiplied by 1, keeping the lot size the same as the Leader’s.
When the price of XAUUSD moves up by 90 points, and the leader closes the trade.
Leader’s Profit Calculation:
Points x Contract Size x Volume in Lot x Tick Size = 100 x 100 x 1 x 0.01 = 100 USD Profit
Autocopier’s Profit Calculation:
Points x Contract Size x Volume in Lot x Tick Size = 100 x 50 x 1 x 0.01 = 50 USD Profit
This approach ensures that the profit or loss is calculated accurately based on the difference in Contract Size between the all across Trading Group.
To optimize your trading, consider adjusting your settings to align with your trading strategy and Trading Group. This will help you fully leverage the potential of Social Trading while maintaining control over your trades. For more information on how to adjust your Subscription Strategy, refer to these guides:
- Wie verwende ich Autoscale im Social Trading?
- How to use Multiply Strategy in Social Trading
- How to use Fixed Strategy in Social Trading
- How to use Lots Proportion Strategy in Social Trading
For detailed instructions, please refer to these guides.
