FTSE 100 Pip Value Calculator – UK100 CFD

UK100 has a contract size of 1 and a pip size of 1 point, making it one of the cleaner instruments to size. The formula is direct:

Pip Value = Pip Size × Contract Size × Number of Contracts

With pip size = 1 and contract size = 1, each contract produces exactly £1 per point moved. No currency conversion required when trading in GBP accounts. Scale to 5 contracts and every point swing equals £5. Scale to 20 contracts and that becomes £20 per point — a 100-point FTSE move generates £2,000 in P&L. Pulsar Terminal's built-in pip value calculator auto-fills UK100's contract size and pip value, eliminating manual input errors before order execution.

The FTSE 100 closed 2023 near 7,733 points. A trader entering a long position at that level with 5 contracts faces an immediate spread cost of 1.5 points × £1 × 5 = £7.50 on entry. To break even, the index must move 1.5 points in the trade's favor before a single penny of profit registers.

Set a 30-point stop-loss on 5 contracts: maximum risk = 30 × £1 × 5 = £150. Target a 60-point move for a 1:2 reward ratio: potential gain = £300. These numbers are fixed and predictable — UK100 pip value does not fluctuate with price levels the way forex pairs do with exchange rate shifts. That stability simplifies pre-trade risk calculations significantly.

A counterintuitive reality: most traders set position size before calculating risk exposure. Data from prop firm challenge statistics consistently shows that oversizing — not bad entries — accounts for the majority of account blowouts. At £1 per pip per contract, a 10-contract UK100 position with a 50-point stop carries £500 of risk per trade.

On a £10,000 account using a 1% risk rule, maximum allowable risk is £100 per trade. That limits position size to 2 contracts with a 50-point stop, or 4 contracts with a 25-point stop. The typical UK100 spread of 1.5 points represents 3% of a 50-point stop — acceptable friction. On a 10-point scalp target, however, that same 1.5-point spread consumes 15% of the expected move before costs, shifting the probability calculus materially against the trade.