How to Size an Index Position in Points, Not Pips
The Orque Markets team · 3 November 2026 · 5 min read · How we write
In short
- Size in € per point = money at risk ÷ stop distance in points.
- Always round down, and skip the trade if the minimum size is too large.
- Place the stop where the idea is wrong, then let the size adapt.
Forex courses teach position size in pips and lots. Indices move in points, and the conversion into euros is set by the instrument, not by the index. Once you see the formula, sizing an index trade takes less than a minute.
The three inputs
- Money at risk. A fixed share of the account, decided in advance: for example 1% of €10,000 = €100.
- Stop distance in points. The distance between entry and the level where the idea is wrong, for example 40 points.
- Value of one point. Read it in the contract specification of your instrument: some express size as "€ per point", others as contracts with a fixed multiplier.
The formula
Size (€ per point) = money at risk ÷ stop distance in points
If your instrument uses contracts with a multiplier, divide once more:
Number of contracts = size in € per point ÷ value of one point per contract
| Account | Risk | Stop | Size |
|---|---|---|---|
| €10,000 | 1% = €100 | 25 points | €4.00 per point |
| €10,000 | 1% = €100 | 50 points | €2.00 per point |
| €10,000 | 1% = €100 | 100 points | €1.00 per point |
| €5,000 | 1% = €50 | 40 points | €1.25 per point |
Illustrative calculation, not an expectation of results. Costs are left out; add the spread or commission in points to the stop for a more honest figure.
Rounding: always down
Instruments have a minimum size and a step. If the formula gives €1.33 per point and the step is 0.1, you take €1.30, never €1.40. When the minimum size is larger than what the formula allows, the trade is too big for the account at that stop: widen nothing, skip it.
Why the stop comes first
Many beginners pick a size and then place the stop where the money "fits". That reverses the logic: the market does not care about your account. The stop goes where the setup is invalidated; the size adapts. On the DAX, for example, a reasonable stop can be many more points than on the CAC 40 simply because the index stands at a higher level (see the DAX explained).
Gaps can exceed the stop
A stop order becomes a market order when it is hit. If the index opens beyond it, the fill can be worse than planned. That is why many traders reduce size before scheduled events or overnight. Read the opening gap checklist before holding a position through 09:00.
Currency: when the index is not in euros
For the Nasdaq 100 or the S&P 500, a point is usually worth a fixed amount in dollars. A euro account then carries a second risk, the EUR/USD rate. Convert the dollar risk at the current rate quoted by your provider, and see US indices for a euro account for the details.
Check it with the tools
- The lot size calculator does the division and the rounding.
- The risk-reward calculator checks that the target justifies the stop.
Summary
Risk in euros, divided by the stop in points, gives the size per point; round down; never move the stop to fit a size. Trading involves risk, and most retail traders lose money.
Questions people also ask
How do I calculate position size on an index?
Divide the money you accept to lose by the stop distance in points, then convert to contracts if needed.
Where do I find the value of one point?
In the contract specification of your instrument; it differs between products and providers.
Does a stop limit my loss exactly?
Not always: if the price gaps beyond it, the stop is filled at the next available price.
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Take the quizTrading financial markets carries a high level of risk and can result in the loss of all the money you invest. Orque Markets content is for education only and is not investment advice. Past results do not guarantee future results.