So let’s take the Dow Jones as our first example. The minimum trade size for each stock index is 1 index. So if we believe the Dow is going to increase in value and we want to open the minimum size then:

**1 index * 1.00 (tick) = $1.00**

So every time the Dow moves one tick (or one point) we will gain or lose a US dollar. If we have a Euro trading account our profit or loss will automatically be calculated at the current EUR/USD exchange rate

Let’s take another example using the FTSE 100 this time. Say this time we wanted to short sell 5 FTSE indexes. Our calculation will be as follows:

**5 indexes * 0.50 (tick) = £2.50**

So every time the FTSE moves 0.50 we will gain or lose £2.50 as we bought 5 indexes. So say the FTSE moved from 6,300.00 to 6,400.00 we would make £500.

Of course if we have a Euro or US Dollar platform our profit is converted at the current exchange rates and that is what we would see in our account.

Let’s look at a final example using the NIKKEI 225. So let’s say we want to buy 200 indexes of the Nikkei then our calculation would be as follows:

**200 indexes * 5.00 (tick) = ¥ 1,000**

So in this case every time the Nikkei moves a tick (5.00) we will gain or lose ¥ 1,000. Of course this ¥ 1,000 will be automatically converted to the Euro, US Dollar or British Pound exchange rates.

Some indices will have a minimum trade size based on their value. For example the Nikkei has a minimum trade size of 100 indexes as the value of the Nikkei is measured in Yen and if we were to buy just 1 index it would be too small a trade. For the other indices we mentioned the minimum trade size is just 1 index.