Standard account
Family XII · Other terms
Not to be confused with cent account, forex account, funded account.
Standard account is a category of retail trading account in which position sizes are expressed in full lots rather than in smaller subdivisions. The term is used mainly in foreign exchange and contracts-for-difference trading, where a standard lot conventionally represents 100,000 units of the base currency. It contrasts with account types that reduce the effective trade size, such as cent accounts or micro accounts.
Contract size and margin
In a standard account, the smallest commonly traded position is usually one standard lot, though many brokers allow fractions such as 0.1 or 0.01 lots. For currency pairs, one standard lot is conventionally 100,000 units of the base currency. Margin is not a fixed figure: it is a percentage of the notional position value, and that percentage varies by broker, by instrument and by the leverage permitted in the trader's jurisdiction.
Because position sizes are larger, the cash value of each price movement is larger than in an account that uses smaller contract units. A one-pip move on a standard lot of a major currency pair is typically worth about 10 units of the quote currency, but this depends on the pair and the prevailing exchange rate.
Worked example
The following illustrates margin and pip value for a standard-lot position. Margin percentage and pip value are illustrative and vary by broker and instrument.
Where the term varies
There is no single universal specification for a standard account. Minimum deposit, available leverage, margin percentages, commission structure and the exact contract size for non-forex instruments are set by the broker and are subject to local regulation. In some jurisdictions, leverage caps reduce the maximum position that can be opened with a given balance. The label therefore describes a contract-size convention rather than a fixed product.
Often confused with
- cent account
- A cent account denominates balances and trade sizes in cents rather than in full currency units, so position sizes and pip values are reduced by a factor of one hundred; the visible sign is that the account balance and profit figures are shown in cents.
- forex account
- A forex account is defined by the market traded rather than by contract size, and it may use standard, mini or micro lots; the visible sign is that the account's instrument list is limited mainly to currency pairs.
- funded account
- A funded account is one where the trading capital is provided by a proprietary firm under an evaluation or profit-split arrangement, not the trader's own deposit; the visible sign is a profit-split percentage or a challenge phase in the account terms.