Contract specification
The instrument-specific trading rules published by the broker or venue. They define how quoted volume and price translate into exposure, costs and order constraints. Specifications can differ for instruments with similar names.
Example. A hypothetical EUR/USD specification lists 100,000 EUR per lot, a minimum volume of 0.01 lot, a 0.01-lot step and a tick size of 0.00001. A 0.03-lot position is EUR 3,000; one tick changes its value by USD 0.03 before costs.
Checklist before using a calculator
- Contract size and the currency or asset it represents.
- Minimum, maximum and step size for volume.
- Tick size, tick value and profit currency.
- Margin calculation, trading hours and supported order types.
- Financing method, rollover schedule and stop-distance restrictions.
Common mistake
Do not reuse an FX contract size for gold, an index CFD or a futures contract. A displayed “point” may not equal one pip, and tick value may need currency conversion.
Apply it
Check the specification for the exact symbol and account, then compare a small hypothetical price movement with the platform’s calculation. MetaTrader 5 explains the Specification window.
FAQ
Can two EUR/USD symbols have different specifications?
Yes. Contract size, volume constraints, execution, margin and charges can differ by provider and account.
Is the number of displayed decimals enough to find tick size?
No. Display precision and permitted price increment are distinct properties.
