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Index Trading

Stock indices measure the price performance of the stock markets. You can buy and sell CFDs on major global indices just like individual shares. Take advantage of broad moves in the stock markets on the world’s largest financial exchanges.

Trading stock index CFDs allows you to leverage a sizeable return with a small investment, meaning your capital goes further. Open an account now to level up your investment opportunities.

What is an index CFD?

A stock index (or plural indices) is a barometer of the overall performance of the stock markets. Roughly speaking, an index helps traders understand the way the market is moving — and make predictions for the future. 

You can use a CFD (Contract for Difference) to make speculations on stock indices. In taking a CFD position, a trader is essentially agreeing to exchange the difference in the price of an index from one-time-period to another. Trading index CFDs is extremely popular. They’re available for all the key indices around the world, which enables traders to participate in world markets no matter where they are located themselves. 

Start Trading Index CFD
Indices
Stock 52 Week Range Chart (24H)
US30
Dow 30
US30
NAS100
NASDAQ 100
NAS100
SPX500
S&P 500
SPX500
GER40
DAX 40
GER40
FRA40
CAC 40
FRA40
CN300
CSI 300 Index
CN300
HK50
Hang Seng Index
HK50
ChinaA50
FTSE China A50 Index
ChinaA50
USDX
US Dollar Index
USDX
JAPAN225
Nikkei 225
JAPAN225
AUS200
Australia S&P ASX 200 Index
AUS200

What are the advantages of trading index CFDs?

  • A great entry point to the world of trading 
    Index CFDs are a great introduction to trading since they follow key global markets.
  • Less risk than trading individual shares 
    With index CFDs, you’re spreading your risk across the whole market, instead of one single company. 
  • Make your capital go further 
    You only need a small sum to leverage a sizeable return with a CFD, meaning your capital goes further. 

More about Index CFDs

A CFD is a Contract for Difference. It’s a financial product that allows you to speculate on future changes in the market. A stock index measures the price performance of global stock markets. So, when you trade indices with CFDs, you’re agreeing to exchange the difference in the price of an index from one time period to another. This gives CFDs the advantage of providing a potentially large margin to traders. 

With the major indexes, this margin typically stands at around 1 to 3% of the value of the index. With a margin of 1%, you would only need $1,000 in cash to leverage $100,000 on an index CFD. This is what makes CFDs so attractive to traders — you can make your capital go further without having to expose yourself to the risks of investing in a single company. 

The most popular stock indices represent the top global markets and are widely followed by investors to gauge market performance. 

First, there’s the Standard & Poor’s 500 (S&P 500). This American stock market index is based on the market capitalization of the 500 largest companies listed on the New York Stock Exchange (NYSE) and NASDAQ. The S&P 500 is highly diversified and represents about 80% of the total value of the US stock markets, making it a key benchmark for investors. 

Next is the Dow Jones Industrial Average (Dow), which tracks the performance of 30 major American companies across key industries. It is one of the oldest and most widely recognized stock indices in the world, often used as a barometer of US economic health. 

Another widely followed index is the Financial Times Stock Exchange 100 (FTSE 100), which represents the 100 largest companies trading on the London Stock Exchange. It provides a clear view of the UK stock market and is used by traders and investors globally to track market trends. 

The NASDAQ 100 represents the top 100 non-financial companies listed on the NASDAQ stock exchange. It is heavily weighted toward technology companies such as Apple, Microsoft, Cisco, and Amazon, making it a key indicator of the tech sector and innovation-driven growth in the US market. 

Finally, the DAX (Deutscher Aktienindex) is Germany’s benchmark index, consisting of 30 major German companies traded on the Frankfurt Stock Exchange. Together, these five indices provide a comprehensive snapshot of major Western markets and are among the most actively traded indices worldwide. 

It’s easy to start trading index CFDs with Mycompany. Here’s how to start your crystal-clear trading experience: 

  • First, you need to register for a trading account. You can do this online, and the process only takes minutes. 
  • Once you’ve added your personal information and verified your identity, you’ll need to deposit some funds to start trading with. The minimum deposit varies depending on the account you choose ($50 is the minimum for a Mini Trading account). 
  • After successfully injecting some capital into your account, you’re ready to trade! Simply download the Mycompany trading platform and take your first steps into the world of index CFDs. 

A stock market exchange is a marketplace where stocks are traded throughout the day. They’re located in all global capitals, including New York, London, Frankfurt, Shanghai, and Tokyo, which means they operate in different time zones. 

Trading is usually conducted from Monday to Friday of each week, with markets closing at weekends and national holidays (which vary from location to location). Opening and closing times differ slightly from region to region, but markets generally open around 9:30 am local time, and close at 4:30 pm. 

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At Mycomapany, we pride ourselves on providing informative and educational resources to help all types of traders. 

If you’re a first-time trader, you can make use of our demo account, which enables you to practice trading CFDs for free. 

Plus, we offer CFD trading tutorials with valuable guides and tips that even experienced traders can benefit from. 

Our trading platform is state-of-the-art, and comes with advanced analytical tools and indicators, and comprehensive statements and reporting to assist you with all your technical analysis. That means you can keep learning about indices as you trade. 

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