Most traders who fail on NAS100 do not fail because of their entries; they fail because of their risk. NAS100 risk management comes down to one rule: decide how much you can lose before you enter.
NAS100 points, pips and point value
NAS100 is quoted in index points. How much one point is worth depends on your broker and contract size: on many CFD accounts one standard lot is worth around $1 per point, but some brokers use different sizes. On futures, the NQ contract is $20 per point and the micro MNQ is $2 per point. Always check your broker's contract specifications before calculating position size.
The 1% rule
Many traders risk no more than 1% of their account per trade (many prop firm traders risk even less). On a $10,000 account, that is $100 per trade.
How to calculate position size
- Decide your risk in money: account × risk % (e.g. $10,000 × 1% = $100).
- Measure your stop distance in points (e.g. 40 points).
- Divide: $100 ÷ 40 points = $2.50 per point. Then convert that into lots using your broker's point value.
How much money do you need to trade NAS100?
Technically very little, because CFDs are leveraged. Practically, you need enough that a sensible stop, at a small fraction of your account, is still possible. Many traders start on a demo account or through a prop firm challenge rather than risking large personal capital.
Protect the account first
- Set a daily loss limit and stop when you hit it.
- Never widen a stop once the trade is open.
- Reduce size after a losing streak, not increase it.
Risk management is the first thing taught in every RisePips program, and the basis of passing a prop firm challenge.
Trading leveraged products such as NAS100 carries a high risk of loss. This article is education, not financial advice. Read our risk disclaimer.