How to Calculate Pips in NASDAQ? – Count Pips on NAS100 | Forex Education (2024)

NASDAQ, or the NASDAQ 100 Index or NAS100, is a stock index comprised of the largest and most prominent non-financial stocks listed on the Nasdaq Stock Exchange. The index was created in 1985 and is designed to track the performance of America’s leading technology companies.

The NASDAQ 100 comprises the top 100 companies listed by market capitalization. Companies eligible for inclusion must be headquartered in the United States or Canada, have their primary listing on the exchange, and meet specific liquidity criteria. The list includes household names like Apple, Microsoft, Amazon, and Facebook.

The index is considered a bellwether for technology stocks as it tracks all publicly traded U.S.-based companies that deal in computing and networking technology, semiconductors, retailing/e-commerce software development, biotechnology, and other related industries. As such, it indicates how well these industries are doing, given that they are often intertwined with each other’s fortunes.

The NASDAQ 100 remains one of the world’s most closely watched indices due to its broad coverage of tech stocks across different sectors. It has become increasingly popular with investors who want to gain exposure to America’s tech sector without having to pick individual stocks themselves. Investors can access the index through derivatives such as futures contracts or exchange-traded funds (ETFs).

Below I will show you one example in MT4 where I opened three different orders. One order is one micro lot position, the second is one mini lot, and the last is one lot trading size position.

If you want to learn how to count pips for various assets, visit our article. For example, on our website, you can learn how to calculate pips on gold or how to count pips on silver.

How to count pips on NAS100 (NASDAQ)?

To calculate the number of pips on NAS100 or NASDAQ, you need to know that a 0.1 difference in price is one pip in the Metatrader platform at most CFD brokers. The NAS100 price gain from 11800.00 to 11800.10 is one pip difference on NAS100. If you add 20 pips on 11800.00 NAS100 prices, you will get 11802.00.

• If we trade one lot size of NAS100 in MT4, one pip is $0.1.
• If we trade one mini lot size of NAS100 in MT4, one pip is $0.01.
• If we trade one micro lot size of NAS100 in MT4, one pip is $0.001.

For example, if we trade one lot size and the NAS100 price goes from 11800.00 to 11876.00, 760 pips gain or $76 in the MT4 platform.

But I will show you an example from live trading with screenshots from the MT4 platform.

How to Calculate Pips in NASDAQ in MT4 Live Trading Example:

Based on the screenshot example NAS100 we can learn how much nas100 is per pip in the following example:

• One micro lot: 11477.65 – 11472.75 = 50 pips. So if the price rises 50 pips and your lot size is one micro lot, it is $0.05
• One mini lot: 11477.65-11470.62= 70 pips – So if the price rise 70 pips and your lot size is one mini lot, it is $0.7
• One lot: 11477.65-11470.5 = 71 pips – So if the price rise 71 pips and your lot size is one lot it is $7.1

One important thing:

Remember that some brokers can change one lot size power and change the formula to calculate the number of gains or losses in dollars based on pips.

So, my advice is always to try to open a few trades on a demo account to see how your broker calculates pips on NAS100 and other indices and then start live trading.