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.

Trading on borrowed funds uses just a small part of your own money as backing. Take a 100:1 ratio as an example. It lets you control $100 for every $1 you put up. A trader with $10,000 then handles $1,000,000. This setup draws many online traders to indices. It gives them extra funds to trade with.

The leverage for each of the 14 indexes 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:

Australia ASX 200

Symbol - AUS200

Pip (1 Point) - 0.1

Pips Size - AUD 0.1

1 Lot Units - AUD 7,000

Margin for one lot is 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 1 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 1 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

Margin per 1 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 remember these financial items are shown in 5 numbers after the decimal & so when trading know that the last number is a part of a point.

For example, if GER30 is priced at 11645.20, the final digit represents a fraction of a point: in this instance, the digit '2' is the point unit. Since one Point for GER30 equals €0.1, achieving a €1 profit mandates a price movement of 10 points, reaching 11646.20.

Instruction on How to Interpret a Bitcoin Trend - Analysis Techniques for Bitcoin Trends - Trading in Alignment with a Bitcoin Trend.

Given that each stock index is benchmarked against a different underlying currency, a standardized lot size is not applicable to these indices. Moreover, profits derived from any specific stock index are calculated utilizing the currency denomination of the economy it represents - consequently, one must factor the prevailing exchange rate relative to the dollar when accurately quantifying total profits.

More Guides and Topics:

Trade Stock Indices

Lots & Contracts in Indices

Specifications of Indices