Indices are the most popular form of CFDs. With us you will find large range of Indices from around the world to choose from, including the Australian S&P 200 Index, UK FTSE 100 Index, US E-mini S&P 500 and US DJIA Index.
A stock index is a good indicative measure of market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue chip stocks listed on the exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index.
Indices have the advantage of allowing traders to take a wider view of a basket of stocks rather than taking a view on one individual stock alone.
Online CFD and futures based indices are offered on both MetaTrader 4 and cTrader Platforms
Indices Spreads – Cash
We offer competitive spreads across all of our cash Indices, including the E-mini S&P 500 Index from 0.5 points, the FTSE 100 Index from 1 point, Xetra DAX Index from 1 point and S&P 200 Index from 1 point.
The following table shows the best available spread for our selection of global Indices.
|AUS200||S&P/ASX 200 Index||1|
|US500||E-mini S&P 500 Index||0.4|
|UK100||FTSE 100 Index||1-5|
|DE30||Xetra DAX Index||1-8|
|HK50||Hang Seng Index||8|
|USTEC||E-mini Nasdaq 100||2|
|F40||CAC 40 Index||1 - 6|
|STOXX50||Dow Jones EURO STOXX 50 Index||2|
|JP225||Nikkei 225 Index||7-8|
|US2000||Russell 2000 Index||0.3|
Opening the PositionBuying the Australia 200 Index
The price of the Australia 200 Index is 4950.00/4951.00. You are of the view that blue-chip stocks are undervalued so you decide to buy 2 contracts at 4951.00. (One contract is equal to $1 per index point). No commission is charged on Indices.
For every point that the bid quote on the Australia 200 Index rises above 4951.00 you will make a profit of $2 AUD, for every point the bid quote falls below 4951.00 you will lose $2 AUD.
Closing the Position
Four days later, the Australia 200 Index has risen to 4970.00/4971.00 and you decide to take your profit. You close your position by selling 2 contracts at 4970.00.
The gross profit on your trade is calculated as follows:
To calculate the net profit you must include any financing or dividend adjustments. Financing adjustments are applied to Indices daily, in the case of a ‘long’ position interested is debited and in the case of a ‘short’ position interest is credited. Dividend adjustments are also applied whenever a stock in the relevant index goes ex-dividend.
You should be aware that if the market had moved in the opposite direction, you would have made a loss that could have exceeded your initial deposit.
Contract Specification Sheet provides further information regarding the Indices on offer their trading hours and spreads.