How to Calculate Lot Size for AUDCAD
BY TIOmarkets
|March 31, 2026AUDCAD is a cross currency pair that tracks the exchange rate between the Australian dollar and the Canadian dollar. Both currencies are closely tied to commodity markets, making AUDCAD a pair that reflects the relative performance of two resource-linked economies.
Because AUDCAD is quoted in Canadian dollars, pip values are denominated in CAD rather than USD. For traders with USD-denominated accounts, a conversion step is required when calculating position size.
This guide covers contract size, pip value in CAD, how to convert that to USD, margin requirements, and how to build a consistent position sizing approach for AUDCAD.
AUDCAD Contract Size
One standard lot of AUDCAD represents AUD 100,000. A mini lot is AUD 10,000 (0.10 lots) and a micro lot is AUD 1,000 (0.01 lots). The minimum trade size at TIOmarkets is 0.01 lots, which equals AUD 1,000 of notional exposure.
The contract size is fixed in Australian dollars. Because the pair is quoted in CAD, the monetary value of each pip movement is expressed in Canadian dollars and varies with the prevailing exchange rate.
How to Calculate Pip Value for AUDCAD
AUDCAD is quoted to five decimal places, so one pip equals a move of 0.0001. Because the quote currency is CAD, the pip value is expressed in Canadian dollars.
For a standard lot of AUD 100,000, the pip value in CAD is calculated as follows:
Pip value (CAD) = Contract size x Pip size
Pip value (CAD) = 100,000 x 0.0001 = CAD 10 per standard lot
For smaller lot sizes the calculation scales proportionally. A 0.10 lot position carries a pip value of CAD 1.00, and a 0.01 lot position carries a pip value of CAD 0.10.
Converting Pip Value to USD
If your trading account is denominated in USD, you need to convert the CAD pip value to USD. USD/CAD is quoted as the number of Canadian dollars per one US dollar, so the conversion requires dividing by the current USD/CAD rate:
Pip value (USD) = Pip value (CAD) / Current USD/CAD rate
For example, if USD/CAD is trading at 1.3900, then for a standard lot:
Pip value (USD) = 10 / 1.3900 = approximately USD 7.19 per pip
If USD/CAD moves to 1.4200, the pip value in USD falls slightly to approximately USD 7.04. This means the USD value of each pip on AUDCAD fluctuates as USD/CAD moves, even when AUDCAD itself is stationary. Position sizing calculations should therefore use the current USD/CAD rate at the time of the trade.
For non-USD accounts, the same principle applies using the relevant conversion pair for your account base currency. The TIOmarkets Pip Value Calculator handles the currency conversion automatically and is the most reliable way to confirm the current pip value before entering a position.
How to Calculate Margin for AUDCAD
The margin requirement for AUDCAD is 1%, consistent with most standard forex cross pairs at TIOmarkets. Required margin is calculated on the notional value of the trade at the time it is opened.
Required margin = Notional value x Margin rate
The notional value of an AUDCAD position is calculated by converting the AUD contract size to USD using the prevailing AUD/USD rate.
For a standard lot of AUD 100,000 with AUD/USD trading at approximately 0.6500:
Notional value (USD) = 100,000 x 0.6500 = USD 65,000
Required margin (USD) = 65,000 x 1% = USD 650
These are illustrative figures based on an assumed exchange rate. The exact margin required will vary with the prevailing AUD/USD rate at the time the trade is placed. The TIOmarkets Margin Calculator will give you the precise figure for any given lot size and live rate.
Margin requirements are subject to change depending on market conditions and applicable regulatory requirements.
Position Sizing for AUDCAD
Position sizing determines how many lots to trade based on your account size and the maximum amount you are willing to risk on a single trade. A fixed percentage risk approach is commonly used, typically between 1% and 2% of account equity per trade.
The core formula is:
Lot size = (Account equity x Risk per trade) / (Stop loss in pips x Pip value per lot in your account currency)
Worked Example
Assume the following conditions for illustration purposes:
Account equity: USD 5,000 Risk per trade: 1% (USD 50) Stop loss: 20 pips Pip value per standard lot: USD 7.19 (based on USD/CAD at 1.3900)
Lot size = 50 / (20 x 7.19) = 50 / 143.80 = approximately 0.35 lots
This means that with a 20-pip stop loss and a pip value of approximately USD 7.19, a position of 0.35 lots risks approximately USD 50, or 1% of the account in this example.
Because the USD pip value of AUDCAD changes as USD/CAD moves, it is good practice to recalculate your position size at the time of each trade. The TIOmarkets Pip Value Calculator and TIOmarkets Profit Calculator can both assist with this.
AUDCAD Volatility and Position Sizing Considerations
AUDCAD is often described as a commodity currency cross because both the Australian dollar and the Canadian dollar tend to move in line with global commodity prices. The AUD is closely linked to iron ore, coal, and agricultural exports, while the CAD is heavily influenced by crude oil prices. When commodity markets move broadly in one direction, the two currencies can move together, compressing AUDCAD's range. When the two economies diverge, the pair can trend strongly.
This relationship means AUDCAD can alternate between extended periods of relatively tight range trading and sharper directional moves driven by diverging commodity price performance or central bank policy differences between the Reserve Bank of Australia and the Bank of Canada. Traders should factor this into stop loss placement and position sizing, as the pair's volatility profile can shift with broader market conditions.
Spreads on AUDCAD are variable and typically higher than the minimum figures shown, and may widen further during periods of low liquidity or around major economic data releases from Australia or Canada.
AUDCAD Trading Hours
AUDCAD trades from Monday 00:00 to Friday 23:55 (platform server time), with the market closed on Saturday and Sunday. Liquidity tends to be highest during the overlap of the Asian and European sessions when both Australian and Canadian market participants are active.
Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions.
Overnight Swap Rates for AUDCAD
Holding an AUDCAD position overnight will result in a swap charge or credit being applied to your account. Swap rates for AUDCAD should be checked directly inside the MT4 or MT5 trading platform, as rates change regularly. Right-click AUDCAD in the Market Watch window and select Specification to view current swap rates.
Trading AUDCAD at TIOmarkets
TIOmarkets operates the tiomarkets.com domain under TIO Markets Ltd, authorised by the Mwali International Services Authority (MISA) in the Comoros Union. AUDCAD is available to trade on both MT4 and MT5 across Standard, Raw, VIP Black, and Nano account types. Hedging is supported on all accounts. Traders interested in swap-free trading conditions should contact TIOmarkets directly to enquire about Islamic account eligibility and available instruments.
TIOmarkets also offers a copy trading service, allowing eligible account holders to follow strategy providers and have trades copied automatically to their account.
FAQ
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