How do I calculate the size of a CFD position?

Your total position size (exposure) is calculated by:

Index/asset price × point value (or tick value) × number of CFDs

For example, you purchase 1 CFD on the ASX 200 at an index level of 5,750.

If 1 point = AUD 1:

• You make AUD 1 for every point the index rises.
• You lose AUD 1 for every point the index falls.
• Total position size (exposure) = 5,750 × 1 = AUD 5,750

This means a 100% move relative to the entry level (5,750 points) would equal AUD 5,750, which represents the full position value.

If instead:

• 1 point = AUD 10 → Exposure = 5,750 × 10 = AUD 57,500
• 1 point = AUD 25 → Exposure = 5,750 × 25 = AUD 143,750

Your profit or loss is calculated by multiplying the number of points moved by the point value.

Alternative calculation: Decimal tick sizes

In some cases, the minimum tick size is measured in decimal movements (to the right of the decimal point).

For example, CFDs on the S&P 500 may trade in 0.1-point or 0.01-point increments.

If the S&P 500 is trading at 2,660:

• If tick size = 0.1 and 1 tick = $1 → There are 10 ticks per full point → Position size = 2,660 × 10 × $1 = $26,660
• If tick size = 0.01 and 1 tick = $1 → There are 100 ticks per full point → Position size = 2,660 × 100 × $1 = $266,600

While these figures may appear high, in practice a single tick is often worth $0.10 or $0.01, which significantly reduces the actual exposure.