Units/Lots | Trading Terms

Trading units (aka lots, aka position size) is one of those trading terms that seem simple but can be quite confusing for someone who’s just come into the trading world.

The reason behind this is that different types of trading require different terminology to describe them. Forex and stocks have different predefined sizes for trading and switching between the two can cause some ambiguity. Trading expert David Jones is on deck to break down the explanation of what lots and units are to their smallest parts and make it simple for everyone who’s struggled with them.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.

[laurenceclack]

Would be so much easier to enter how much you want to stake in £'s

[omranjabarti]

you are one if the most lovely teacher I have seen

[josephmann]

Now i get it thanks for the video. 10, 000 equals 1 dollar while 100, 000 equals 10 dollars

[Crownedheadqueso]

thank you for going over the units and how they work complete newbie here peace and blessings

[madabouthistory]

really am loving the videos, I joined yesterday started trading using practice account, from 50k to now on 122, 628 and that's in 24 hours, ivew learnt a lot in the space of one day so I cant wait til I do few more days on practice then to a real account, really love the platform, and gotta say you really do explain stuff well and simple, ive found ema 8 hour and 20 hour very useful, also rsi, ive been finding trends also :} really hoping I can master this . ive got 1k in sterling in bitcoin and that's just not moving so decided to withdraw that in couple days and see how I do

[yogeshshinde]

Thanks for this video! Appreciate your hard work! I am new to trading 212 with practice account, and I just wanted to know:
1. where can i see my closed trades
2. Instead of quantity can we not buy on the basis of price and quantity to be auto selected as per the price quoted.
3. Can we switch percentage instead of points?

[rowlandturner]

Thanks David, very interesting to learn this before venturing in to trading

[DanielPaprocki]

For me using this units instead of amounts in £ that I actually want to invest is confusing 🤷🏻‍♂️ I'm never sure how big is my trade.

[danielmoody]

Thanks David, really helped me out. This has been the only video to really explain units/lots!

[smsaifullah]

Hi David can you please explain how you plan to exit the trade like as you opened live account GU. As usual great work i like the way you see the market and explain nicely!! Thank you so much you helping lot of retail traders who are extremely helpless in the market and their own physiology appreciate your input mate...

[linux]

Sorry, might seem like a stupid question.. in reference to this ''because we are trading $10k each point is worth $1'' why is every point worth $1?

[crimsonpirate]

Great video, helpful examples and a live trade thrown in for good value. Excellent, many thanks.

[tradingage]

You are a great teacher Dear David. Thanks.

[andrewjackson]

I’ve opened an account with just a tenner to learn, how much of my tenner will a 0.1 trade take up please?😂

[salv]

Great useful video, thank you for sharing, is there a way to determine where you place your stop loss? Would this be below support level?

[brouse]

thanks for the video, i am just wonderin if you could set examples around stock market or crypto market.

[IDLWITB]

Hi guys thank you for the videos. Whilst this video gives us the monetary value of risk, can you pls explain the risk calculations when considering volatility (using the ATR) and where to place stop as well based on the 1%. The percentage that one risks is optional of course.

[noelpayano]

danke für das video jetzt habe ich mehr kopfschmerzen mit tim

[AV-ijti]

Great video! I'm going to practice with a demo account until I grasp the concept since I failed miserably with penny stocks :(

[lancepheng]

Seems like we have to play with it and guess lol. I wish there was s chart as there are so many instruments. So for gold, what is the actual position price needed from the trader and how much is borrowed from the broker? and when does the margin call come in if the price moves in a unfavourable direction?