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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