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Index point value calculator

An index moves in points. Your account moves in money. This is the number that connects them, and it is not the same for two people trading the same index.

One point, one contract1.00 GBP
One point, this position1.00 GBP
40.00 points, this position40.00 GBP

Why the same index is worth different amounts

Two people can hold the same index at the same moment and have entirely different amounts at risk, because the contract size is a property of the wrapper rather than of the index. A cash position at £1 per point, a spread bet at £5 per point and a futures contract with a 50-dollar multiplier all track the same number and convert it to money at different rates. The index is a calculation; the contract size is what makes it cost something.

The currency step people skip

An index settles in a currency. The S&P 500 settles in dollars, the FTSE 100 in sterling, the DAX in euros. If your account is not in that currency, every point you make or lose is converted before it reaches your balance - so the size of your position moves with the exchange rate, not only with the index. Set the two currencies differently above and the rate stops being decoration.

What this tool will not tell you

What contract size to trade, or which wrapper to use. Those depend on your account, your risk and what your broker actually offers, and nothing here is a recommendation about any of them. This page does the conversion so the decision is made in money rather than in points.

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<iframe src="https://ticksprout.com/tools/index-point-value?size=1&contracts=1&points=40&index=GBP&currency=GBP&rate=1&embed=1" width="100%" height="620" style="border:0" title="Index point value calculator" loading="lazy"></iframe>
<a href="https://ticksprout.com/tools/index-point-value">Index point value calculator by Tick Sprout</a>

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Index point value calculator