# Lots and Contracts in Trading Stock Indices

Stock indices are traded in lots; these lots are made up of a number of units of a particular stock index.

For example the 1 lot of AUS200Cash Index is made up of AUD 7,000 and for this 1 lot one point movement in the stock index value is equal to AUD 0.1; However with leverage of 100:1 a trader only needs AUD 70 as their margin or capital so as to open 1 lot of AUS200Cash Index.

Leverage for those who do not know is trading on borrowed capital while using very little of your own capital as security. For example leverage 100:1 means that a trader borrows $100 dollars for every $1 dollar of their own. Therefore if a trader has $10,000 dollars and uses leverage 100:1, meaning that the trader now borrows $100 dollars for every $1 dollar that they have - they will now have control of $1,000,000 total capital to invest - that is $10,000*100= $1,000,000. This leverage is what makes stock indices attractive to most online traders as traders obtain more capital to invest with once they employ leverage.

The leverage for each of the 14 indices is shown below along with the margin requirements and profit per 1 point movement in the stock indices instruments.

## Specifications of Stock Indices

The specifications of the stock indices provided for trading are shown below:

**Australia ASX 200**

Symbol - AUS200Cash

Pip (1 Point) - 0.1

Pip Value - AUD 0.1

1 Lot Units - AUD 7,000

Margin per Lot - AUD 70

**EU EURO STOXX**

Symbol - EU50Cash

Pip (1 Point) - 0.1

Pip Value - EUR 0.1

1 Lot Units - EUR 4,000

Margin per Lot - EUR 40

**France CAC 40**

Symbol - FRA40Cash

Pip (1 Point) - 0.1

Pip Value - EUR 0.1

1 Lot Units - EUR 4,000

Margin per Lot - EUR 40

**Germany DAX 30**

Symbol - GER30Cash

Pip (1 Point) - 0.1

Pip Value - EUR 0.1

1 Lot Units - EUR 8,500

Margin per Lot - EUR 85

**Hong Kong Hang Seng 50**

Symbol - HK50Cash

Pip (1 Point) - 1

Pip Value - HKD 1

1 Lot Units - HKD 45,000

Margin per Lot - HKD 450

**Italy FTSE MIB 40**

Symbol - IT40Cash

Pip (1 Point) - 1

Pip Value - EUR 1

1 Lot Units - EUR 4,000

Margin per Lot - EUR 250

**Japan Nikkei 225**

Symbol - JP225Cash

Pip (1 Point) - 1

Pip Value - JPY 1

1 Lot Units - JPY 9,000

Margin per Lot - JPY 90

**Netherlands AEX 25**

Symbol - NETH25Cash

Pip (1 Point) - 0.1

Pip Value - EUR 0.1

1 Lot Units - EUR 500

Margin per Lot - EUR 5

**Spain IBEX 35**

Symbol - SPAIN35Cash

Pip (1 Point) - 1

Pip Value - EUR 1

1 Lot Units - EUR 14,000

Margin per Lot - EUR 140

**Switzerland SMI 20**

Symbol - SWI20Cash

Pip (1 Point) - 0.5

Pip Value - CHF 0.5

1 Lot Units - CHF 10,000

Margin per Lot - CHF 100

**UK FTSE 100**

Symbol - UK100Cash

Pip (1 Point) - 0.1

Pip Value - GBP 0.1

1 Lot Units - GBP 7,000

Margin per Lot - GBP 70

**USA S&5 500**

Symbol - US100Cash

Pip (1 Point) - 0.1

Pip Value - $ 0.1

1 Lot Units - $3,000

Margin per Lot - $30

**USA NASDAQ 100**

Symbol - US30Cash

Pip (1 Point) - 0.5

Pip Value - $ 0.5

1 Lot Units - $15,000

Margin per Lot - $150

**USA DJIA 30**

Symbol - US500Cash

Pip (1 Point) - 0.1

Pip Value - $ 0.1

1 Lot Units - $1,200

Margin per Lot - $12

Please note these instruments are quoted in 5 decimal points and therefore when trading note that the last point represents a fraction of a point.

For example if GER30 is quoted at 11645.20, the last point represents a fraction of a point, the point in this case is the digit 2, and because for GER30 1 Point equals EUR 0.1 to make profit of EUR 1, the price will have to move 10 points that is 11646.20.

The margin is the amount of capital that you will put down so as to transact one lot of that financial instrument.

Each stock index is based on a different currency; therefore there is no standard lot for these stock indices. In addition the profit from each stock index is calculated in the currency of the economy that it represents - therefore you have to factor the exchange rate in relation to the dollar when calculating the profits.