# How to calculate deposit needed in XM Group and practical leverage level. 1 STANDARD account with 100,000 units of currency

At XM Group, there are 3 types of accounts, the each lot has different units.

Therefore, when changing between different accounts or when placing a CFD with different lot numbers, you need to be aware of issues such as confirming order lot number ..

• MICRO Account: 1 lot = 1,000 currency units
• STANDARD Account: 1 lot= 100,000 currency units
• XM ZERO Account: 1 lot = 100,000 currency units

## How to calculate the deposit

The required deposit calculation is very simple, just apply the formula below.

“Contract Price” × “Trading Currency” × “Lot Number” ÷ “Leverage”

For example, if the USD / JPY is USD 1 = 120.00 JPY, the required deposit for the STANDARD account is calculated as follows.

120.00 JPY × 100,000 currency units × 1 lot ÷ 888 = 13.514 JPY

Because the maximum leverage of XM is 888 times, you still need a minimum capital of 13,514 because of the condition stated above.

For example, USD 1= JPY 120, when you switch to USD, you need USD112.6 because (13,514 ÷ 120 = \$ 112.6)

Also, since you can place orders from 0.01 lots on XM Group,, you need a capital of 135 JPY (\$ 1.12) to trade 0.01 lots (1000 currency unit).

If trading with maximum leverage, only a few pips move can lead to “stop out”.

So, when real trading, the management of capital is very important, such as 200 times or 300 times the leverage of maximum leverage 888 times..

Furthermore, effective leverage can be determined by the formula below.

[Order value (transaction volume × contract price of each currency)] ÷ [Capital (total amount of capital + valuation (loss)] = [effectiveleverage]

For example, if you place a sell or buy order for 1 lot (100,000 currency units) and your capital is 100,000 yen when USD / JPY is 120.00 JPY, then the formula for leverage is as follows.

(100,000 currency units × 121.00 JPY) ÷ 100,000 JPY = 121

In case there are many orders, the leverage is calculated by adding the order value divided by capital.

You can confirm “Capital” in real time at Terminal. ## Forex calculator of XM Group

No complicated calculation.

XM Group offers convenient calculation tool for deposit