The advantage of trading indices over individual stocks, and using them in passive investment strategies, is that they offer exposure to an entire industry.
For instance, the Dow Jones Industrial Average (.US30_) one of the most frequently used indices worldwide is comprised of stocks from 30 of the largest companies in the US, representing approximately 25% of the US market. With index CFD (Contract for Difference), the investor can buy as well as sell. Take advantage of the lowest spreads and easy use of the leverage.
| Instrument | Typical Spread (in pips) | Lot size | Trading hours (CET) |
|---|---|---|---|
| AUS200 | 8 | Value of 25 future contracts | 00:05 - 08:30, 09:15 - 23:00. Fridays closes 22:00 |
| BRAComp | 250 | Value of 2 future contracts | 14:05 - 22:55, fridays closes 22:00 |
| CZKCASH | 4.5 | Value of 100 future contracts | 09:20 - 16:00 |
| DE30 | 20 | Value of 25 future contracts | 02:15 - 22:00 |
| EU50 | 5 | Value of 10 future contracts | 02:15 - 22:00 |
| FRA40 | 10 | Value of 10 future contracts | 08:00 - 22:00 |
| HKComp | 50 | Value of 5 future contracts | 03:20 - 06:00, 07:35 - 10:15, 11:20 - 21:00 |
| HUNComp | 80 | Value of 5 future contracts | 9:10 - 17:00 |
| CHNComp | 25 | Value of 10 future contracts | 03:20 - 06:00, 07:35 - 10:15, 11:20 - 21:00 |
| INDIA50 | 12.5 | Value of 20 future contracts | 05:50 - 12:00 |
| ITA40 | 50 | Value of 5 future contracts | 09:00 - 20:30 |
| JAP225 | 35 | Value of 10 future contracts | 02:05 - 08:10, 09:35 - 18:00 |
| KOSP200 | 0.5 | Value of 500 future contracts | 02:05 - 08:10 |
| MEXComp | 200 | Value of 3 future contracts | 15:30 - 21:00 |
| RUS50 | 4 | Value of 100 future contracts | 09:05 - 17:45, 18:05 - 22:50, fridays closes 22:00 |
| SPA35 | 20 | Value of 10 future contracts | 08:00 - 20:00 |
| SUI20 | 10 | Value of 20 future contracts | 08:00 - 22:00 |
| UK100 | 5 | Value of 10 future contracts | 02:00 - 22:00 |
| US100 | 5 | Value of 20 future contracts | 24 hours with break from 22:15 to 22:30 and from 23:00 to 00:05. Fridays closes 22:00 |
| US2000 | 1.5 | Value of 200 future contracts | 0:05 - 23:00, fridays closes 22:00 |
| US30 | 20 | Value of 5 future contracts | 24 hours with break from 22:15 to 22:30 and from 23:00 to 00:05. Fridays closes 22:00 |
| US500 | 2 | Value of 50 future contracts | 24 hours with break from 22:15 to 22:30 and from 23:00 to 00:05. Fridays closes 22:00 |
| VOLX | 20 | Value of 4000 future contracts | 00:00 - 22:15, fridays closes 22:00 |
| W20 | 20 | Value of 20 future contracts | 08:45 - 16:50 |
What are Indices CFDs?
An index is an indicator that measure a change in prices of securities in the market. Stocks indices consist of portfolio of securities representing a particular market. Trading Indices CFDs allows traders to place both long and short positions to benefit from a price rise or fall, respectively.
How to trade Indices CFDs?
Trading Indices CFDs with Tradematics is very easy. After you have successfully opened account and your uploaded documents have been approved you can start trading. Next step is downloading the trading platform on your device and signing in with your credentials. Now all you have to do is to choose a Indices CFDs you want to trade.
Advantages of trading Indices CFDs?
Stock indices can be explained as a „basket“ of shares so trading indices can be compared to opening positions on the courses of several dozen stocks at once. Stock indexes CFDs provide an easy way to track the overall health of the economy and to participate on its growth.
Which are the major world indices?
Tradematics offers its client opportunity to invest in major indices from Europe, USA and Asia. In the United States the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite are the three most broadly followed indexes by both the media and investors. In Europe most watched indices are in DAX30 in Germany, CAC40 from France and FTSE100 in United Kingdom. Major Indices in Asia are Nikkei225 in Japan, Hang Seng in Hong Kong and ASX200 in Australia.
What affect the CFD indices?
Stock markets are affected by a variety of factors from economics, politics, natural disasters and many more. Macro-economic factors such as interest rates, inflation, unemployment, and economic growth often move stock markets. Election in the biggest economies in the world and political decisions like new laws, regulations, changes in tax rates also affect the stock markets. Natural disasters, pandemics and other external shock factors that can cause huge moves in stock prices in both positive and negative direction.