ENTRY  N° 49  /  80
Glossary

Multiplier

Part of the theme Derivatives and contracts.

Definition

A multiplier is the dollar value assigned to each index point for a financial futures contract, used instead of a physical quantity.

A standard stock-index future uses a 50 dollar multiplier, so at an index of 5,000 one contract is worth 250,000 dollars of exposure and each one-point move is worth 50 dollars.

Formula / example: Notional = index level x multiplier

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