Trade Forex Trading

Lots and Contracts on Index

Stock indices are traded in standardized units called lots: each lot comprises a specific quantity of shares representing the given index.

As an illustration, the 1 lot of AUS 200Cash Index consists of AUD 7,000, and each point movement in the value of this lot is worth AUD 0. 1. However, a trader just needs AUD 70 as their margin or capital in order to open 1 lot of AUS 200Cash Stock Index with leverage of 100:1.

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

The leverage for the 14 indexes is shown below, along with the margin needed and the profit for each point(pip) the instruments move.

Specifications of Index

Specifications of the Indices provided for trading are shown below:

Australia ASX200

Symbol - AUS 200Cash

Pip (1 Point) - 0.1

Pip Size - AUD 0.1

1 Lot Units - AUD 7,000

Margin per 1 Lot - AUD 70

EU EURO STOXX

Symbol - EU50Cash

Pip (1 Point) - 0.1

Pip Value - € 0.1

1 Lot Units - € 4,000

Margin per 1 Lot - € 40

France CAC40

Symbol - FRA 40Cash

Pip (1 Point) - 0.1

Pip Size - € 0.1

1 Lot Units - € 4,000

Margin per 1 Lot - € 40

Germany DAX30

Symbol - GER30Cash

Pip (1 Point) - 0.1

Pip Value - € 0.1

1 Lot Units - € 8,500

Margin per 1 Lot - € 85

Hong Kong HangSeng50

Symbol - HK 50Cash

Pip (1 Point) - 1

Pip Size - HKD 1

1 Lot Units - HKD 45,000

Margin per 1 Lot - HKD 450

Italy FTSEMIB40

Symbol - IT40Cash

Pip (1 Point) - 1

Pip Size - € 1

1 Lot Units - € 4,000

Margin per 1 Lot - € 250

Japan Nikkei225

Symbol - JP 225Cash

Pip (1 Point) - 1

Pip Size - JPY 1

1 Lot Units - JPY 9,000

Margin per 1 Lot - JPY 90

Netherlands AEX25

Symbol - NETH 25Cash

Pip (1 Point) - 0.1

Pip Value - € 0.1

1 Lot Units - € 500

Margin per 1 Lot - € 5

Spain IBEX35

Symbol - SPAIN35Cash

Pip (1 Point) - 1

Pip Size - € 1

1 Lot Units - € 14,000

Margin per 1 Lot - € 140

Switzerland SMI20

Symbol - SWI 20Cash

Pip (1 Point) - 0.5

Pip Size - CHF 0.5

1 Lot Units - CHF 10,000

Margin per 1 Lot - CHF 100

UK FTSE100

Symbol - UK100Cash

Pip (1 Point) - 0.1

Pip Size - £ 0.1

1 Lot Units - £7,000

Margin per 1 Lot - £70

USA S&5 500

Symbol - USA 100Cash

Pip (1 Point) - 0.1

Pip Value - $ 0.1

1 Lot Units - $3,000

Margin per 1 Lot - $30

America NASDAQ100

Symbol - US 30Cash

Pip (1 Point) - 0.5

Pip Size - $ 0.5

1 Lot Units - $15,000 dollars

Margin per 1 Lot - $150

USA DowJones30

Symbol - USA 500Cash

Pip (1 Point) - 0.1

Pip Size - $ 0.1

1 Lot Units - $1,200

Margin per 1 Lot - $12 dollars

Keep in mind that these financial instruments are quoted in five decimal places, so when trading, keep in mind that the final decimal place reflects a fraction of a point.

For example if GER 30 is quoted at 11645.20, last point represents a fraction of a point, point in this case is the digit 2, & because for GER 30 1 Point equals € 0.1 to make profit of € 1, price will be required to move 10 points that's 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 index is associated with a specific currency, which means there is no standard lot size for these Stock Indexes. Moreover, the profit from each Index is calculated in the currency of the economy it represents, necessitating consideration of the exchange rate in relation to the dollar for profit calculations.

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Indices Broker