FTSE MIB Pip Value Calculator – IT40 Guide

The formula is direct: Pip Value = Pip Size × Contract Size × Number of Lots. For the IT40, pip size is 1 point, contract size is 1, so one standard lot yields €1 per point moved. Scaling to 5 lots produces €5 per point; 10 lots produces €10 per point. No currency conversion is needed when trading in a EUR-denominated account — the math stays clean. Pulsar Terminal's built-in pip value calculator auto-fills the IT40's contract size and pip value, removing manual input errors before order execution.

The FTSE MIB closed 2023 as Europe's best-performing major index, gaining roughly 28% — a run that produced thousands of tradeable points. Consider a long entry at 30,000 with a target at 30,200 and a stop at 29,950. That's a 200-point target and a 50-point stop — a 4:1 reward-to-risk ratio. At 1 lot, the target returns €200 and the stop risks €50. At 3 lots, the same setup targets €600 while risking €150. The typical spread of 10 points costs €10 per lot at entry, representing 20% of the stop distance in this example — a cost that compounds quickly if position size is not calibrated against it.

Data from professional prop firm frameworks suggests a 1% account risk ceiling per trade as a standard threshold. On a €20,000 account, that's €200 maximum risk. With a 50-point stop on the IT40, the calculation limits position size to 4 lots (€50 risk × 4 = €200). Exceeding that by even 1 lot pushes risk to €250 — 25% above the ceiling. The 10-point spread also means any trade with a stop under 30 points starts underwater by more than 33% of its risk budget at open. Historically, intraday volatility on the IT40 averages 80–120 points per session, which provides enough range to justify stops of 40 points or more, keeping spread cost below 25% of total risk.