Trade the world's largest Stock indices round-the-clock with instant execution on either the MT4 or MT5 platform.
Why Trade Indices with Eightcap
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What is Index CFDs Trading?
Index CFDs are contracts for difference over equity indexes. A contract for difference, or CFD, is a type of derivative that allows a trader to gain a long or short exposure to a trading instrument’s price. While the trader does not own the underlying asset, they ‘own’ any movement in the price of that asset while they hold a position.
An Index is a basket of assets – in most cases stocks, but any assets can be included in an index. An index is usually weighted by the market capitalization of each company, with the largest companies having the most influence on the index value.
Trading Indices using Contracts for Difference
Eightcap’s clients can trade 8 of the most popular indices in the world, allowing them to profit from activity in equity markets around the world. With equity markets on 4 continents represented, traders can trade nearly 24 hours a day, 5 days a week.
Comparing Index Trading
There are several instruments you can use to trade stock indexes, including futures, options, ETFs and CFDs. Futures and options require a trading account with a broker for each exchange, and typically have high contract sizes.
ETFs (exchange traded funds) are ideal for long term investors. ETFs are themselves shares which own all the shares in an index. They are therefore a cost-effective method of owning all the index fund shares without buying each individual stock.
For active traders and traders with smaller accounts, CFDs can be the most cost effective and easy to trade. Traders can access multiple markets with one trading account, and unlike ETFs, CFDs offer leverage and the option of going short.