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FP Markets Through Index Contracts for Difference (CFDs) Provide trading services for major global stock indices, Bringing highly competitive high leverage on world-class trading platforms. on line CFD Index trading is an ideal way to participate in the top global stock markets. with the help of FP Markets, You can go as low as 1% Global Initial Margin Trading CFD index futures . transaction AUS200 cash index, every point AU$1. Through NASDAQ 100, S&P 500, European Futures Exchange and Index, etc, Master the trends of overseas stock indexes.

We have collaborated with multiple leading banks and non bank financial institutions, To ensure a deep liquidity pool, So that you can get the best market price and ultra-low latency order execution.

What are the advantages of index trading?

  • transaction CFD Indices can provide you with opportunities to speculate on the trend of the underlying index, Without actually owning any ownership of stocks.

  • When you trade indices, You can trade both positive and negative price trends, This gives you more trading opportunities.

  • Competitive leverage means you can choose to increase your risk exposure with only a small amount of investment.

  • please remember, CFD Index is a leveraged product, That means your losses may also increase.

  • By looking like MT4, MT5 Such a powerful platform, FP Markets Can provide real-time prices, Cutting edge technical analysis and charting tools .

FP Markets Providing far more than just index trading! We also offer foreign exchange, commodity,
stock Competitive spreads under unparalleled trading conditions.

What is the best platform for index trading?

MetaTrader 4 The most popular trading platform in the world.

On the strongest trading platform MetaTrader 4 (MT4) and Both computer and mobile platforms are ready, MetaTrader 4 Waiting for your experience.

Customizable exclusive interface, Colors including technical specifications


One click trading


Quoted market price


Real time price streams on real and simulated accounts 128 Bit encryption, To ensure transaction security


expert advisor (EAs)


Customizable exclusive reminders


give iOS, Android and Mac Device compatibility

Are there more platform options available?

we recommend MT4 Used for index trading

Why choose
FP Markets Trading Index Contracts for Difference?

Fast and convenient

Affordable price

Obtain low-cost and highly competitive margin, as low as 1%.

Convenient transaction

contract size

With every slight change 1 Risk exposure to the US dollar, Cash index contracts allow you to accurately adjust your position size based on your risk management situation.

zero

commission

The cost of cash index contracts has been included in the bid ask spread.

hedging

risk

Diversify your investment portfolio and hedge risks by trading CFD indices.

index-trading

What is Index trading?

Stock market indices provide indicators for measuring specific stock markets. They are the value of a group of stocks in a certain country, Represents a specific group of stocks currently, History and overall performance. Investors use the calculated value of stock indices as the current value of their constituent stocks. By comparing current and historical index levels, Investors can gradually achieve expected returns.

Every stock exchange in the world has a benchmark stock index, Some have multiple. These stock baskets are usually ranked by independent institutions, For example, major banks or transformational companies, Like FTSE Group or Deutsche Bank. They also have different scales. for example, FTSE 100 Index tracks the top market capitalization rankings of the London Stock Exchange 100 The stock price of the home company. ASX 200 Index tracking before the Australian Securities Exchange 200 The stock price of the home company, (取决于上下文, 如"but SPI 200 Futures contracts are based on ASX 200 The benchmark stock index futures contract for the index.

Due to the impossibility of tracking all companies on the stock exchange, Therefore, traders resort to index trading. By trading indices, It can measure the overall performance of a country's stock market and even the overall economic performance. Traders speculate based on the price trend of their financial instrument index, Earn returns when the index value increases.

Index CFD trading Example

Assuming you want to trade CFDs, The underlying asset is US30, approach "Dow Jones industrial average " . Let's assume US30 The price is:

us30-bid-ask-price

You have decided to buy 5 share US30 contract, Because you believe in the future US30 Prices will rise. Your margin rate is 0. 5%. This means that you need to calculate the total position value 0. 5% Deposit into your margin account.

Within the next hour, If the price moves to 35849/35852, So you have a profitable transaction. You can do it through US30 The current selling price (approach 35849) Sell out and close the position.

in this case, The price is developing in a direction that is favorable to you. however, If the price actually drops, Contrary to your prediction, You may suffer losses. This kind of adjustment to price changes and the resulting profits/The continuous assessment of losses occurs every day. therefore, It will bring a net return to your initial margin (straight/burden) . In your free assets (Account balance + profit and loss) Below the margin requirement (896. 6) Under the circumstance of losses, The broker will issue a margin call notice. If you are unable to deposit funds, And the market is further unfavorable to you, When your free net worth reaches your initial margin 50% time, The contract will be closed at the current market price, be called "stop out" .

Have you noticed how small price differences provide trading opportunities? This small difference is called "drop" perhaps "Percentage points" . For the index, 1 pip equal to 1. 0 The price increment, Also known as index point.

short-long-bid
if
US30 price
to Your long position
Possible profit or loss
Causing initial margin
The return is
rise 1% 36222. 64/36224. 64 USD 358. 64 40%
fall 1% 35505. 36/35507. 36 USD -358. 64 40%

Index trading Advantages of

Trading thousands of stocks through different exchanges, Stock indices can provide an accurate and reliable way to measure overall market sentiment. They are still the benchmark for a stock portfolio.

Provide investment opportunities for the overall industry of a certain country. You don't need to conduct thorough research on individual companies and other fundamentals. Just need to go long or short based on the overall market direction. This can reduce the risk of individual companies affecting the performance of your entire investment portfolio.

The price trend of the index is smoother, Because the performance of individual stocks does not lead to a sudden increase in volatility. But this volatility is enough to give you a lot of trading opportunities. There are many activities in individual stocks, Will generate sufficient index volatility. Index trading is suitable for traders of all styles and various trading strategies, Because the index reflects the widespread impact of economic and political changes.

select FP Markets of 6 A reason

Global forex brokers

An Australian regulated Forex broker

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Global

Customer fund isolation

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Ultra-low point difference

Market leading
as low as 0. 0 drop, 24/5

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Ultra fast execution

Low latency, ultra fast
Transaction execution time is less than 40 millisecond*

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Advanced platform

MT4, MT5 and WebTrader give
Excellent client portal

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24/7^ Multi-Language Support

Award winning customer service
Personal Account Manager

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was established in 2005 year

15 year+
Industry experience

Contract for Difference Index Spread

product code Trading products   standard account
    Minimum spread Average Spread
AUS200 Australia 200 Index vs Australian Dollar Cash - 1. 33
CHINA50 China A50 Index vs US Dollar Cash - 7. 58
EURO50 Euro 50 Index vs Euro Cash - 1. 95
FRA40 CAC 40 Index vs Euro Cash - 2. 29
GER40 German 40 Index vs Euro Cash - 1. 24
HK50 Hang Seng Index vs Hong Kong Dollar Cash - 4. 43
ITA40 Italy 40 index vs Euro Future - 15
JP225 Japan 225 Index vs Japanese Yen Cash - 5
SPA35 Spain 35 Index vs Euro Cash - 5. 65
UK100 UK100 Index vs Great Britain Pound Cash - 1. 33
US100 US Tech 100 Index vs US Dollar Cash - 1. 28
US30 US 30 Index vs US Dollar Cash - 1. 09
US500 US 500 Index vs US Dollar Cash - 0. 45
USDX USD Index Basket vs US Dollar Future - 0. 05
VIX VIX Index Cash vs US Dollar Future - 0. 16

Direct market access (DMA) Index Contract for Difference Spread

Optional index
NASDAQ 100 E-Mini DJIA E-Mini (CBOT) Mini SPI 200
Nikkei 225 (CME) DAX Index SPI 200
S&P 500 E-Mini EURO Stoxx 50

Dividend adjustment

If you hold a cash index that pays dividends CFD Open long positions in contracts, You will be entitled to receive an amount equivalent to the number of contracts you hold after the close of trading on the business day prior to the ex dividend date.

opposite, If you hold a spot index CFD (Payment of dividends) Open short positions, You will need to close the market on the business day before the ex dividend date, Pay a sum of money based on the number of contracts you hold. This adjustment may serve as your Metatrader 4 perhaps Metatrader 5 Cash adjustment of trading account, Alternatively, it can be included in the overnight interest at the end of the day.

How is the stock market index
Calculated?

Financial experts and investors use various methods to calculate stock indices.
Some commonly used methods include:

Market value weighted method

In this method, The stocks included in the index are weighted by the market value of each company. S&P 500 and ASX 200 The index is the main index used in this method.

Equal weight method

As its name suggests, All stocks receive the same weight based on their returns. After calculating the return of each stock, Add them together, Then divide by the total number of stocks in the index.

Price weighting method

This method uses the price of the applicable stock to obtain a weighted average. No matter what the market value is, Stocks with higher stock prices will receive greater weight. The Dow Jones in the United States uses the price weighting method.

The index with the highest trading volume
What is it?

FP Markets Provide over a dozen global large-scale index trading options, Most of the trading is based on global indices.

Dow Jones Index: The Dow Jones Industrial Average is commonly referred to as "Dow" , It is a price weighted index, Including those listed on the US stock exchange 30 A large company. Salesforce, Boeing and Disney are both its constituent companies.

S&P 500 index: Tracking the largest market capitalization in the United States 500 Only stocks, And weighted by market value. S&P 500 Famous companies in China include Amazon, apple, Microsoft, Alphabet And Tesla.

FTSE 100 index: The largest market capitalization by the London Stock Exchange 100 Only composed of stocks. It is usually referred to as "Footsie" , Including major financial institutions such as Lloyd's Bank and Barclays Bank.

ASX 200 index: Also using market capitalization weighting, ASX 200 The index is also operated by Standard&Poor's, It is the benchmark for the performance of Australian stocks.

How to identify it
What drives the price of the index

There are multiple factors that can affect the index price

Component price fluctuations: The significant price fluctuations of stocks in a specific index are the main reason for the price changes in that index.

Economic news and data: Market news related to economic data can influence the stock market and its benchmark indices. This includes publishing and inflation, Key economic data related to unemployment and futures markets. Key information can be found in Economic Calendar .

political news: election, Changes in monetary policy and trade relations may affect financial markets and their key components (Like an index) Political factors.

composition variation: The increase or decrease of stocks in an index can cause fluctuations in their prices.

Specific industries: There are many industry-specific indices, Like NASDAQ 100 index, This does not include any companies in the financial industry.

Why choose Index trading

Trading opportunities: Trading through Contracts for Differences, Traders can benefit from the rise and fall of index prices.

hedging: Indices are particularly useful for hedging strategies, Because you can invest in indices of a specific industry. If a trader's investment portfolio consists of stocks from the financial industry, They can trade on NASDAQ 100 index, To hedge against any significant price fluctuations in the current investment portfolio.

diversification: Index contracts for difference allow traders to access global markets without investing in individual stocks. Australian traders can invest DAX 30 (Germany) Or Hang Seng Index (Hong Kong) To reach out to other markets.

lever: The ability to use leverage for trading is CFD One of the main attractions of trading. Traders can establish positions with much higher value than the available funds in their trading accounts.

How to proceed Index trading

A simple way to trade indices is through the use of online trading platforms CFD transaction. These financial instruments allow traders to speculate on indices without owning the underlying assets. FP Markets pass through MetaTrader 4 (The most popular in the world CFD trading platform) Provide index trading.

Index trading
- frequently asked questions

transaction cost: In CFD trading, You do not own the ownership of the underlying asset. This reduces the overall cost of conducting transactions.

Small volatility: The index is composed of multiple different stocks, Therefore, it is not easily affected by significant price fluctuations.

leverage trading: Just deposit the required margin for the exchange, Can enable traders to gain greater index exposure, Without the need to deposit the full value of the position.