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Trade Stock Indices Online

Trade Stock Indicies Cash CFDs via Our MetaTrader 4 Platform

We offer traders access to a wide range of major global stock market indices via our Index Cash CFD products. Trade the S & p 500, Dow Jones, DAX, FTSE, SPI 200, Hang Seng, Nikkei and more.

What are Indices & How do they work?

A stock index or stock market index is a measurement of the value of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.

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How They Work

Most indexes calculate the value of their composite stocks at a certain point in time and set this value as the base, or starting point. All future values can be compared to this base.

For example, an index with a base of 100 (other bases may be used) and a current value of 200 has doubled over the time period.

While this approach is by far the most common construction, averages also exist—most notably the Dow Jones industrial average.

The Dow Jones industrial average deserves a special consideration because it represents a small sample (currently, 30 stocks), and it is widely quoted.

Originally, the Dow was reported by adding up the prices of all its stocks and dividing by the number of stocks—a typical ‘average’ calculation. However, over the years, stock splits and stock dividends had to be taken into consideration, and this is done by changing the divisor. When you hear that the Dow is at 12,000, it means that the average share is worth $12,000 before all splits and stock dividends over the years.

Beyond the restricted sample of only large stocks representing only major industries, the adjustment to the divisor has actually caused the growth in the average to be understated. Stocks that split have less future impact on the average, but the stocks that split tend to be the ones experiencing growth.

Although not technically an “index,” the interpretation of the numbers is similar—when the Dow was first published in 1896 (with 12 stocks), it stood at a little over 40; when it topped 12,000 in 2006, it indicated that the average had risen 300 times.

Why Trade Stock Index CFDs ?

Sophisticated traders and investors may wish to take both short term and long term views broader view of a particular countries stock market, rather than trading individual an individual companies stock.

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Because CFDs trade on margin. traders amd investors need only a fraction of the total value of a position to trade. 

Competitive Spreads/Margins on Indices

Choose from 25+ currency pairs, 10 major indices, gold, silver, crude oil and the most traded commodities. Take full advantage of minimum spreads from 0 pips on forex, market execution and up to 1:500 leverage.

Learn More About Indices

It would be too difficult to track every single security trading in the country. To get around this, we take a smaller sample of the market that is representative of the whole. Thus, just as pollsters use political surveys to gauge the sentiment of the population, investors use indexes to track the performance of the stock market.

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