Indices2018-10-08T16:56:40+00:00

Trade Main Global Stock Indices

An index measures the collective price performance of a group of stocks, usually from a country or a region. For example, the UK100 (FTSE 100 underlying) is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization (highest value). Stock market indexes are intended to represent an entire stock market and thus track the market’s changes over time.

Let’s look at an example. One of the most popular indices in the world is the widely used Dow Jones Industrial Average Index (US30), computed by combining 30 large-cap US stocks together into one index value. If the index falls, that means that stocks lost on average. On the other hand, a rise in the indices’ value means that the stocks became more expensive. Traders can track changes in the value of indices over time and use it as a benchmark against which to compare their own portfolio returns.

But why are traders buying or selling index CFDs? What are the greatest advantages of trading indices? The answer is simple. It’s much easier to buy a CFD on a stock index rather than buying or selling all stocks that are included in it. If a trader believes that the market could rise in the future, he buys an index CFD. If he believes that the market could fall, he sells the index CFD. It’s an easy and cheap way to speculate on the future of a stock market.

What is a CFD regarding to indices trading?
The term CFD stands for contracts for difference. A contract for difference creates, as its name suggests, a contract between two parties on the movement of an asset price. In case of the indices CFDs parties are speculating on the future direction of a index. For example, a buyer of the DE30 (CFD on the DAX index) assumes that DAX could rise in the future.

There are several key features of CFDs that make them a unique product:
✅ CFDs are a derivatives product
✅ CFDs are leveraged
✅ You can potentially profit from both rising and falling prices
✅ We offer contracts for differences on over 1200 global assets, including indices, cryptocurrencies, shares, currencies, commodities, and ETFs

The ability to go long or short along with the fact that CFDs are a leveraged product makes it one of the most flexible and popular ways of trading short term movement in financial markets today.

What are the most popular indices?
There are many indices all over the world and many indices CFDs in our offer. However, some of them are more popular and more liquid than others. It’s obvious that the Dow Jones would be closely watched by investors all over the world, while the Mexican Stock Index would garner less attention for traders globally. If so, which indices are worth looking at? Here they are:
United States:
• Dow Jones (US30)
• SP500 (US500)
• Nasdaq (US100)

Germany:
• DAX (DE30)

United Kingdom:
• FTSE100 (UK100)

France:
• CAC40 (FRA40)

Japan:
• Nikkei225 (JAP225)

Trade on over 25 Major Global Indices
We cover indices from most the popular exchanges around the world. As an attractive alternative for diversifying your investment portfolio, positions on indices are rolled over as the underlying contract expires to maintain the open position. You can profit from falling indices as well as rising ones, so there are trading opportunities happening all the time.
Leverage up to 50:1
The leverage we offer on indices is much better than most exchanges on future contracts. This means that you can gain a much larger exposure for a smaller initial deposit, freeing up your funds for additional positions.

Deep liquidity
We are currently using several renowned liquidity providers. This allows us to offer you the best possible prices, execution and market depth. Even high-volume trades can be executed with the lowest possible slippage, thanks to our advanced market solutions.

Tight spreads
Go long or short on the UK 100 (FTSE), DE 30 (DAX) and US 30 (Dow Jones) and many more indices with some of the best trading conditions available and free from commission for basic and standard accounts.

Trade your way – choose an account to suit your best
As with equity/shares transactions, a client can hold “long” and “short” FX positions. Being long simply means buying the first currency and selling the second in any currency pair. So, if a particular FOREX trader expected the euro to strengthen against the dollar they would BUY EUR/USD. Conversely, if they anticipated a market fall, they might SELL a currency before the anticipated fall, with the aim of buying it back at the lower price.

  • Basic:suited for beginners who are at the start of their trading journeys. Enjoy fixed spreads, no additional commission. Trades are executed instantly, and leverage starts from 200:1 on FX instruments. Micro lots trading is also available, with simple functionality that allows you to focus on shaping your skills.
  • Classic: The trading account for most traders. This account offers a floating spread and has been designed for traders who have informed views on the market. It is ideal for those who adhere to a solid strategy in their trading.
  • Gold:Designed for the more experienced traders. Instruments are quoted at market prices with floating spreads, and spreads are tighter during more active hours. Trades are executed instantly.
  • Pro-Trader:for the most sophisticated investors. Market spreads are pure, and every trade is charged an additional commission. You can benefit from interbank pricing from the FX market with this account.