How to Calculate Lot Size for XPDUSD (Palladium)
BY TIOmarkets
|March 31, 2026Palladium is one of the rarer precious metals available to trade as a CFD, and XPDUSD is the symbol used to trade it against the US dollar. Because palladium is priced in USD per ounce, the monetary value of each price movement is straightforward to calculate for USD account holders.
This guide covers contract size, dollar value per price move, margin requirements, and how to size a palladium position based on your account equity and risk tolerance.
XPDUSD Contract Size
One standard lot of XPDUSD equals 100 ounces of palladium. The minimum trade size is 0.01 lots, which represents 1 ounce. Between these two points, positions can be sized in increments of 0.01 lots, giving traders a range of exposure from a single ounce up to 100 ounces per standard lot.
The contract size is fixed in ounces. The monetary value of any given position changes with the prevailing palladium price, which means position sizing calculations should always use the current market price rather than a fixed reference figure.
Dollar Value Per Price Move on XPDUSD
Because XPDUSD is quoted in US dollars per ounce, calculating the monetary value of a price movement is direct for USD-denominated accounts. The value of a one-dollar move per ounce across the full contract is simply the number of ounces in the position.
For a standard lot of 100 ounces, a one-dollar move in the palladium price equals a USD 100 change in position value. For a 0.10 lot position (10 ounces), a one-dollar move equals USD 10. For the minimum 0.01 lot position (1 ounce), a one-dollar move equals USD 1.
Palladium is quoted to two decimal places, so the smallest price increment is USD 0.01 per ounce. For a standard lot, this equals USD 1 per tick. However, palladium is a thinly traded market relative to gold or silver, and price moves of several dollars at a time are not unusual, particularly around news events or during periods of low liquidity.
For non-USD accounts, the USD profit or loss on any position will be converted to your account's base currency at the prevailing exchange rate. The TIOmarkets Profit Calculator can be used to estimate position outcomes in your account currency.
How to Calculate Margin for XPDUSD
The margin requirement for XPDUSD is 5%, which is the same as platinum (XPTUSD) at TIOmarkets. Required margin is calculated on the notional value of the position at the time it is opened.
Required margin = Notional value x Margin rate
Notional value = Lot size (in ounces) x Current XPDUSD price
For example, if palladium is trading at USD 1,000 per ounce and you open a standard lot (100 ounces):
Notional value = 100 x 1,000 = USD 100,000
Required margin = 100,000 x 5% = USD 5,000
If palladium is trading at USD 1,500 per ounce and you open a 0.10 lot position (10 ounces):
Notional value = 10 x 1,500 = USD 15,000
Required margin = 15,000 x 5% = USD 750
These are illustrative examples based on assumed price levels. The actual margin required will depend on the palladium price at the time you open your trade. The TIOmarkets Margin Calculator will give you the precise figure for any given lot size and live price.
Margin requirements are subject to change depending on market conditions and applicable regulatory requirements.
Position Sizing for XPDUSD
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 common approach is to risk a fixed percentage of account equity per trade, typically 1% to 2%.
The core formula is:
Lot size = (Account equity x Risk per trade) / (Stop loss in dollars x Dollar value per lot per dollar move)
Because XPDUSD moves in dollars per ounce and each standard lot covers 100 ounces, the dollar value per lot per one-dollar price move is USD 100.
Worked Example
Assume the following conditions for illustration purposes:
Account equity: USD 10,000 Risk per trade: 1% (USD 100) Stop loss: USD 50 (a fifty-dollar move in the palladium price) Dollar value per standard lot per one-dollar move: USD 100
Lot size = 100 / (50 x 100) = 100 / 5,000 = 0.02 lots
This means that with a USD 50 stop loss and a position of 0.02 lots (2 ounces), the maximum loss on this trade if the stop is hit is approximately USD 100, or 1% of the account in this example.
Because palladium can move significantly during a single session, the choice of stop loss distance matters considerably in determining lot size. A wider stop requires a smaller position to maintain the same risk in dollar terms, and a tighter stop allows a larger position. Neither approach changes the dollar risk if the position sizing formula is applied correctly.
XPDUSD Volatility and Position Sizing Considerations
Palladium is one of the thinnest and most volatile commodity markets available. Its price is heavily influenced by supply dynamics, particularly from South Africa and Russia, which together account for the majority of global mine production. Demand is closely tied to the automotive industry, where palladium is used in catalytic converters, making it sensitive to shifts in vehicle production data and emissions regulations.
This combination of concentrated supply and industrial demand can produce large, rapid price swings, sometimes of hundreds of dollars in a short period. Traders approaching XPDUSD should account for this when setting stop loss levels and sizing positions. Using a stop loss that is too tight relative to normal market noise may result in frequent stop-outs even when the broader trade direction is correct.
Spreads on XPDUSD are variable and typically higher than the minimum figures shown, and may widen further during periods of low liquidity or around major market events.
XPDUSD Trading Hours
XPDUSD is available to trade from Monday 01:00 to Friday 23:30 (platform server time), with the market closed on Saturday and Sunday. These trading hours are the same as platinum (XPTUSD) and similar to gold (XAUUSD). Trading begins each weekday at 01:00 server time rather than at midnight, reflecting the opening of the underlying metals market session.
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 Financing on XPDUSD
Holding a XPDUSD position overnight will result in an overnight financing charge or credit being applied to your account. Overnight financing on commodity CFDs is generally calculated on a different basis from forex swap rates. Current rates should be checked directly inside the MT4 or MT5 trading platform by right-clicking XPDUSD in the Market Watch window and selecting Specification.
Trading XPDUSD at TIOmarkets
XPDUSD is available to trade on both MT4 and MT5 across Standard, Raw, and VIP Black 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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