NAS100 Position Size Calculator: What's Your Correct Lot Size?

How to Use the NAS100 Position Size Calculator

This tool takes the complex math out of risk management so you can focus on your trading. For disciplined trading, always use the default "Risk-Based Sizing" mode. Here’s the simple process:

1. Enter Your Account Details: Input your total "Account Balance", your "Account Currency", and the "Leverage" your broker provides for indices.
2. Define Your Risk: This is the most important step. Choose to risk either a "Percentage (%)" of your account (e.g., 1%) or a specific "Fixed Amount" of money.
3. Set Your Trade Levels: Input your planned "Entry Price" for the NAS100 and your "Stop-Loss" level, either as an exact price or as a distance in points.
4. Get Your Position Size: The calculator instantly shows you the precise number of "Contracts" to trade to ensure your risk perfectly matches your plan.

Why Position Sizing is Your Ultimate Edge

The secret to surviving and thriving in the fast-paced NAS100 market isn't a magical entry signal; it's bulletproof risk management. At the heart of that is getting your position size right on every single trade.

Think of it like this: your trading strategy is your engine, but your position size is your steering and brakes. Without them, you're just going full throttle into a brick wall. Properly sizing your position is the number one thing that separates professional, calculated trading from reckless gambling. Official regulators such as the European Securities and Markets Authority (ESMA) have issued formal warnings that complex, leveraged products often result in significant losses for retail traders. This tool helps bring that disciplined risk control to life.

The Position Sizing Formula: How It Works

We believe in total transparency. Here is the exact formula this calculator uses in its "Risk-Based Mode" to protect your capital:

Position Size (Contracts) = Risk Amount / ((Stop-Loss in Points * Point Value) + Commission per Contract)

Let's break that down:

• Risk Amount: The maximum cash you are willing to lose on this trade, defined by you.
• Stop-Loss in Points: The distance between your entry and stop-loss. For NAS100, one point is a $1.00 move in the index price.
• Point Value: For a standard NAS100 CFD, the value of one point is typically $1 USD. The calculator converts this to your account currency.
• Commission per Contract: Your broker's fee, if any, which is added to your total risk.

A Real-World Example: Sizing a NAS100 Trade

Let's follow a trader named Mark. His account is in Pounds Sterling (£) with a balance of £10,000. He has a strict rule to never risk more than 1% of his account on a single trade.

Mark wants to go long on the NAS100 from an entry price of 18,500.00. He places his stop-loss at 18,450.00. His broker charges a £1.00 commission per contract.

1. Step 1: Calculate Total Risk in Account Currency

   This is the maximum loss Mark will accept.
   £10,000 (Account Balance) * 0.01 (1% Risk) = £100.00

2. Step 2: Calculate Stop-Loss Distance in Points

   This is the size of the risk on the chart.
   18,500.00 (Entry) - 18,450.00 (Stop) = 50 Points

3. Step 3: Calculate Total Risk Per Contract in Account Currency

   First, find the point value. It's $1 USD per contract. If the USD/GBP exchange rate is 0.80, the point value is £0.80.
   (50 Points * £0.80 Point Value) + £1.00 Commission = £40 + £1 = £41 per contract

4. Step 4: Find the Correct Position Size

   Now, divide the total allowed risk by the risk per contract.
   £100 (Total Risk) / £41 (Risk per Contract) = 2.43 Contracts

The Result: The calculator would tell Mark to trade 2.43 contracts. This precise sizing ensures that if his stop-loss is triggered, he only loses his planned £100, protecting his capital for the next opportunity.

Frequently Asked Questions (FAQ)

What is a "point" for the NAS100?

For most CFD brokers, one "point" in the NAS100 index represents a $1.00 price movement. For example, if the index moves from 18,500.00 to 18,501.00, that is a 1-point move. The value of this point is then converted into your account currency.

How does leverage affect my NAS100 position size?

It's crucial to understand that leverage does not determine your position size; your risk tolerance does. Leverage only determines the margin (the deposit) required to open the position. This calculator performs a vital two-step check: it first calculates the correct size based on your risk rules, then it uses your leverage to confirm you have enough margin in your account to open the trade, preventing rejections.

What is a good risk percentage for trading the NAS100?

Given the high volatility and fast-moving nature of the NAS100, a conservative risk of 0.5% to 1.5% of your total account value per trade is a professional standard. This disciplined approach helps you navigate the market's significant swings without suffering catastrophic losses.