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How is trading volume calculated?

Updated over a week ago

Calculating trading volume in forex refers to the amount of base currency a trader is trading.

The formula for trading volume on the forex market is:

Trading Volume (TV) = Number of lots x Contract size

Example 1:

An order to buy 3 lots of EURUSD:
TV = 3 x 100,000 EUR
TV = 300,000 EUR

Example 2:

An order to sell 3 lots of UKOIL:
TV = 3 x 1,000 BBL
TV = 3,000 BBL

Example 3:

An order to buy 2 lots of the S&P 500 Index (with each lot representing $50 per point):

TV = 2 x 50 x 4,000

TV = 400,000 USD

Example 4:


An order to buy 5 lots of XAUUSD (with each lot representing 100 ounces of gold):
TV = 5 x 100 ounces
TV = 500 ounces of gold

Note: Trading volume is always calculated in the base currency (the first currency in the pair).


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