Trade the world's largest Stock indices round-the-clock with instant execution on either the TradingView, MT4 or MT5 platforms.
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 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 usually weighted by the market capitalization of each company, with the largest companies having the most influence on the index value. When you are trading indices via CFDs, you are agreeing to open a contract to exchange the difference in the price of a particular index, at the point of open to the point of close. Profit or loss will be based on the direction of speculation you make.
Trading Indices using Contracts for Difference
Eightcap’s clients can trade 8 of the most popular indices in the world, allowing them to profit (or lose) 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 methods you can use to trade Indices including, futures, options, ETFs, and CFDs. Futures and options require a trading account with a broker for each different exchange, futures also typically have large contract sizes.
ETFs (Exchange Traded Funds) are ideal for long-term investors. ETFs can be slightly complicated as they are shares themselves which then own all the shares in that particular index. They are used as a cost-effective method of owning all the index fund shares without buying each individual stock.
CFDs can be the most cost-effective and popular option amongst traders, as they can access multiple markets with only one trading account. CFDs also offer the option of opening long and short positions, unlike ETFs.
Indices are the plural form of a stock index. A stock index measures the performance of a group of shares within a particular exchange. For example, the DAX represents the 30 blue-chip companies from the New York Stock Exchange, if the individual stocks from this index were to rise in price then the price value of the DAX would also increase. The same would happen if the stocks were to fall, the DAX would also drop.Read the Article
Advantages of trading Index CFDs
- Access multiple indices with one trading account.
- Trade market action from around the world.
- Go long and short, and use leverage with small or large amounts of capital.
Disadvantages of trading Index CFDs
- Using leverage irresponsibly can lead to large losses.
- Index trading is competitive and requires time and commitment to become proficient.
All times are GMT+3
|Dow Jones Industrial Average (US30)||00:00 - 24:00 (Monday open 01:00)|
|CAC 40 (FRA40)||09:00-23:00|
|German stock index DAX 30 (GER30)||00:00-24:00 (Monday open 01:00)|
|FTSE 100 (UK100)||00:00-24:00 (Monday open 01:00)|
|Euro Stoxx 50 Future (EUSTX50)||00:00-24:00 (Monday open 01:00)|
|NASDAQ 100 (NDX100)||00:00-24:00 (Monday open 01:00)|
|S&P/ASX 200 (ASX200)||00:50-07:30, 08:10-23:00|
|Nikkei 225 (JPN225)||00:00-24:00 (Monday open 01:00)|
|Hang Seng (HSI) (HK50)||00:00-24:00 (Monday open 01:00)|
|Standard & Poor's 500 (SPX500)||00:00-24:00 (Monday open 01:00)|
With more than 24 time zones across the globe, financial markets can be traded at any given time. Read our guide on stock market trading hours here.