NAS100 lot size calculator

Without purchasing shares, you can trade changing Nasdaq 100 prices through a contract for difference, or CFD. When your platform labels the index US100 or US Tech 100, this tool works as a US100 lot size calculator.

Index prices change in points. One point equals a whole-number change of 1 in the index price. The trade size entered on your ticket is called a lot. For each 1 point move, your broker sets the cash gained or lost by 1 lot.

Order tickets work differently for spread betting vs CFD trading. A cash stake of £5 per point is one example of what you enter on a spread bet. With a CFD, you buy or sell units or lots instead. Your stop loss controls risk by closing your trade automatically after the price falls by the number of points you choose.

Unlike the usual lot size calculator used for currency pairs, index CFDs don't have 1 universal contract size. For the Nasdaq 100, brokers choose their own point values and minimum trade sizes.

At IG, 1 full US Tech 100 CFD has a value of USD 100, or GBP 74.54, for each 1 index point move. IG's minimum size is 0.01, so trading starts from USD 1 per point. Tier 1 positions at IG require 5% margin. A guaranteed stop needs 10 points, while other stops need at least 4 points.

Minimum spreads for the US NDAQ 100 at CMC Markets start from 1 point. At Pepperstone, the NAS100 has a 1 point minimum spread on accounts called Razor and SpreadBet. Pepperstone charges no commission on index CFDs, while Standard accounts start at 1.2 points.

Under the symbol NAS100-F, Pepperstone offers a 3 month forward contract. Its minimum spread is 3 points and its minimum size is 1. Overnight cash CFD swaps at Pepperstone include a 2.5% charge in the calculation.

Before placing a trade, you work out your position size using 3 figures. Use these steps to find your lot size:

1. If the trade goes wrong, choose the largest cash loss you can accept.
2. Measure how many index points lie between your entry price and the price set by your stop loss.
3. Look in your broker's contract specification for the gain or loss that 1 full lot makes when the price moves 1 point.
4. Divide the amount you're risking by the stop cost for 1 lot.

First, find 1 lot's point value and multiply it by your stop distance in points. Then divide your cash risk by that result.

Cash at risk ÷ (Stop distance in points × Point value of 1 lot) = Lot size

When your account uses pounds and the contract uses US dollars, change the point value to pounds first.

Consider a trade where you're willing to risk $100 and use a 10 point stop loss. With 1 lot set at $1 per point by your broker, a 10 point stop has a $10 cost on 1 lot. This makes your trade size 10 lots for $100 at risk.

A larger contract from your broker changes the result. At IG, 1 full contract changes by $100 for every 1 point, so a 1 point move would use all your $100 risk. On that account, the minimum 0.01 lot costs $1 per point, which puts $10 at risk with a 10 point stop. A forex demo account lets you check your broker's exact contract size before you place a live order.