What is ‘Unit’ on Harborx?
If you’ve been trading with Harborx long enough, you may have noticed a recent change: the volume of your trade has changed from ‘Lots’ to ‘Units’. What used to be 0.01 Lots, the default trade volume for currency pairs, has become 1 Unit. And for Gold and Silver, the minimum trade volume of 0.1 Lots have turned into 10 Units. You may be wondering… what ARE these?
A Bit of Theory Behind Trade Volume
Let’s think beyond currencies and financial instruments. When something is bought or sold, the trade happens in a certain amount… We buy 1 pair of shoes, 2 kilos of fruit, 40 liters of gas, etc… And, naturally, the more we buy, the more we pay.
In the forex market, when one currency is bought against another, we need to define the amount of the trade, too. The industry standard measurement is Lots. One standard lot equals to 100,000 units of base currency. For us, retail traders and fx beginners, it is a crazy amount! This is where smaller volumes come into play:
- A mini lot = 10,000 units of base currency
- A micro lot = 1,000 units of base currency
- A nano lot = 100 units of base currency
Therefore, the 0.01 Lots volume you’re used to seeing on the app = 1 micro lot, which is 1,000 units of base currency. To make it easier for traders to operate and get rid of zeros and decimals, we have introduced the measurement in Units.
So, buying 1 Unit of EURGBP means that you are buying 1,000 Euros against the GBP.
‘But if I only have $50 in my account, how can I buy 1000 Euros?’ a beginner might ask. This is possible thanks to leverage, which basically lets you open trades with more funds than you have in your account. Be sure to check out this article to understand how it works.
Changing The Volume of Your Trade
When you place your trade on Harborx, you can increase your Unit volume. To do it, simply tap on Units when you open a trade and type your desired unit amount.
Keep in mind that the higher Unit amount you put, the higher is the margin you need to have. And remember that you cannot edit the Unit amount after you have opened the trade.
Got questions? Comment to let us know!
Harborx Limited is regulated by Cyprus Securities and Exchange Commission under license number 230/14 in accordance with the Markets in Financial Instruments Directive of the European Union, and the Investment Services and Activities and Regulated Markets Law of Cyprus (Law 144 (1) / 2007). Harborx.com is owned and operated by Harborx Limited.
Risk warning: there is a high level of risk involved with trading forex, commodities, indices and other contract-for-differences. Past performance is not a reliable indicator of future results. You must be aware of the risks associated with trading directly or indirectly on margin. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please seek independent advice if the risks involved seem unclear to you and refer to our full risk disclaimer.
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