# Working out Lot sizes for Stock Indices

#### rom1

##### Junior member
15 0
I am trying to work out how leverage for Lots works in Indices trading.

It doesn’t seem to be as straight forward as it is for forex.

For example, the cost of one Lot of Spain’s Ibex35 index is different to that of one Lot of the German Dax.

This gets particularly confusing on the MT4. When placing a buy order for the Ibex 35, the MT4 order page informs you that you will buying one Lot of that index. But it does not tell you what the size of that Lot is, or how much it would cost you. I only learn what it cost me after I place the trade and then calculate how much of my margin it has eaten into.

I presume one Lot of Ibex35 is a set number of points of that index?

Is there anywhere this information is displayed more clearly? Or some way of working it out? I would also like to know what the value of each PIP in the Ibex 35 is.

Thanks in advance!

#### DT

##### Well-known member
312 38
the short answer to your question is to go and look at the contract specs on the relevant exchange websites (i.e. Eurex and MEFF in this case)

For example, the cost of one Lot of Spain’s Ibex35 index is different to that of one Lot of the German Dax.
What do you mean by "the cost of one lot"? If you're referring to the initial margin requirements this is obviously going to vary for different indices.

Or do you mean the value of one tick? This is a little bit arbitrary and set by the exchange.

I presume one Lot of Ibex35 is a set number of points of that index?
one lot has a notional value of 10EUR per point of the IBEX35

i.e. if the IBEX35 is currently trading at 10180 then 1 lot = a notional value of 101,808 EUR

for the Dax one lot has a notional value of 25EUR per point of the Dax

Is there anywhere this information is displayed more clearly? Or some way of working it out? I would also like to know what the value of each PIP in the Ibex 35 is.
pip is a term used in FX trading - with futures you generally refer to ticks (the smallest incremental price movement)

for the Ibex a tick is equivalent to an index point and is 10EUR
for the Dax a tick is equivalent to half an index point and is 12.5 EUR

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