Lots & Contracts in Indices

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

For exemplification the 1 lot of AUS200Cash Index is made up of AUD 7,000 & for this 1 lot one point movement in the 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 that as to open 1 lot of AUS200Cash Index.

Leverage for those who don't know is trading on borrowed capital while using very little of your own capital as security. For exemplification leverage 100:1 means that a trader borrows $100 dollars for every $1 dollar of their own. Therefore if a trader has $10,000 and uses leverage 100:1, meaning that the trader now borrows $100 dollars for every $1 dollar that they have - that is $10,000*100= $1,000,000. This leverage is what makes index 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 displayed below along with the margin requirements and profit per 1 point(pip) movement in the instruments.

Specifications of Indices

Specifications of the index provided for trading are shown below:

Australia ASX 200

Symbol - AUS200

Pip (1 Point) - 0.1

Pips Size - AUD 0.1

1 Lot Units - AUD 7,000

Margin per One Lot - AUD 70

EU EURO STOXX

Symbol - EU50Cash

Pip (1 Point) - 0.1

Pips Size - € 0.1

1 Lot Units - € 4,000

Margin per One Lot - € 40

France CAC 40

Symbol - FRA40Cash

Pip (1 Point) - 0.1

Pips Size - € 0.1

1 Lot Units - € 4,000

Margin per One Lot - € 40

Germany DAX30

Symbol - GER30Cash

Pip (1 Point) - 0.1

Pips Size - € 0.1

1 Lot Units - € 8,500

Margin per One Lot - € 85

Hong Kong Hang Seng 50

Symbol - HK50

Pip (1 Point) - 1

Pips Size - HKD 1

1 Lot Units - HKD 45,000

Margin per One Lot - HKD 450

Italy FTSE MIB 40

Symbol - IT40

Pip (1 Point) - 1

Pips Size - € 1

1 Lot Units - € 4,000

Margin per One Lot - € 250

Japan Nikkei 225

Symbol - JP225Cash

Pip (1 Point) - 1

Pips Size - JPY 1

1 Lot Units - JPY 9,000

Margin per One Lot - JPY 90

Netherlands AEX 25

Symbol - NETH25

Pip (1 Point) - 0.1

Pips Size - € 0.1

1 Lot Units - € 500

Margin per One Lot - € 5

Spain IBEX 35

Symbol - SPAIN35Cash

Pip (1 Point) - 1

Pips Size - € 1

1 Lot Units - € 14,000

Margin per One Lot - € 140

Switzerland SMI 20

Symbol - SWI20

Pip (1 Point) - 0.5

Pips Size - CHF 0.5

1 Lot Units - CHF 10,000

Margin per One Lot - CHF 100

UK FTSE 100

Symbol - UK100Cash

Pip (1 Point) - 0.1

Pips Size - £ 0.1

1 Lot Units - £7,000

Margin per One Lot - £70

USA S&5 500

Symbol - US100

Pip (1 Point) - 0.1

Pips Size - $0.1

1 Lot Units - $3,000 dollars

Margin per One Lot - $30

America NASDAQ100

Symbol - US30Cash

Pip (1 Point) - 0.5

Pips Size - $ 0.5

1 Lot Units - $15,000 dollars

Margin per One Lot - $150 dollars

USA Dow Jones 30

Symbol - US500

Pip (1 Point) - 0.1

Pips Size - $0.1

1 Lot Units - $1,200 dollars

Margin per One Lot - $12

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

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

The margin is the amount of capital that you will put down so that 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 index. Additionally 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 relative to the dollar when calculating the profits.

More Guides and Topics:

Trade Stock Indices

Lots & Contracts in Indices

Specifications of Indices