63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Academy News What do micro-lots change for DAX and S&P traders

What does micro-lots change for DAX and S&P traders

We are introducing micro-lots on stock indices including the DAX and S&P. What does it change for those who are trading these symbols and why it could be a good news for small account owners? Read our short article and find out!

Micro-lots on DAX

Up to this point, we were offering DAX trading starting on 0.1 lot. With our index price 9550.0 and 1:20 leverage on ESMA account, this requires 1193.75 EUR on margin requirements (with leverage of 1:50 on PRO account the margin requirements would be 477.5 EUR). Since this is quite a significant amount of money for the majority of smaller account clients, the DAX instrument is simply not tradeable for them.

That’s why we have decided to switch to another LP (liquidity provider) which will allow trading starting on 0.01 lot while keeping our trading conditions (tick size and tick volume) unchanged.

If we consider the fact that with current trading conditions (minimum margin requirements for opening 0.1 lot) small account clients, are not be able to afford to trade DAX, switching to new LP will change this. Because with 0.01 lot position the margin requirement is 10 times lower.

If we demonstrate it on the example we used previously it would mean that with 0.01 position the trader will now need 119.38 EUR (with 1:20 ESMA account leverage), or 47.75 EUR (with 1:50 PRO account leverage.

DAX: Margin requirement depending on volume of trading position
instrument	old margin requirement (0.1 lot)	new margin requirement (0.01 lot)
DAX	1193.75 EUR	119.38 EUR

Micro-lots on S&P 500

The price of the index is 2498.0. With current conditions, clients can open only multiples of 0.5 lot. This means that with minimal trading volume (0.5 lot) they need 3122.5 USD (with leverage 1:20) or 1249 USD (1:50).

With micro-lots the minimal trading volume is 0.01 which means that margin requirements are 50 times lower than with 0.5 lot position. This means 62.45 USD (with 1:20 leverage) and 24.98 USD (with 1:50).

S&P: Margin requirement depending on volume of trading position
instrument	Old margin requirement MARŽI (0.5 LOT)	new margin requirement (0.01 LOT)
S&P 500	3122.5 USD	62.45 USD

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63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. L.F. Investment Limited. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. L.F. Investment Limited has taken reasonable measures to ensure the accuracy of the information on the website, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website.

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CFDs with underlying asset a virtual currency pair are complex, extremely risky, and usually highly speculative and entail a high risk of losing all the invested capital and therefore are not appropriate for all investors. The values of virtual currencies values are subject to extreme price volatility and therefore may result in significant loss over a short period of time. Clients should not engage in trading in CFDs with underlying asset a virtual currency pair unless they have the necessary knowledge in this specific product; or if they can bear the loss of the entire invested amount. For more details please see the Risk Warnings and Disclosures.