Indices CFD Trading
Trade the world's leading stock exchanges with Index CFDs across powerful platforms.
Trade Index CFDs
FTSE 100, S&P 500, Nikkei 225, Hang Seng, GER 40 are some important stock indices. Their performances are always at the forefront of financial news updates. Amber Fund Management provides exposure to a wide array of global stock indices through Index CFDs on world-class trading platforms.
Why trade Index CFDs?
- Trading Index CFDs allows you to speculate on the direction of the underlying index's movement, without having physical ownership of any shares.
- Exposure to international stock indices.
- Competitive leverage means you can choose to increase your exposure with only a small investment.
- Trading CFDs on Indices can be cost-efficient as not owning the underlying asset may mean fewer tax liabilities.
- Suitable for hedging strategies or portfolio diversification.
What platforms can be used to trade CFDs on Indices?
Explore trading Index CFDs on some of the most powerful trading platforms available such as Webtrader. Accessible on both desktop and mobile platforms, Webtrader can change your trading perspective.
- Customisable interface, including colours of technical indicators
- One-click trading
- MarketWatch
- Live price streaming on Live and Demo accounts
- 128-bit SSL encryption for secure trading
- Expert Advisors (EAs)
- Customisable alerts
- Compatible with iOS, Android and Mac devices
Why Trade Index CFDs?
Accessible & Affordable
Low-cost, competitive margins, starting at just 5%.
Convenient Contract Size
With a US$1 per point movement exposure, cash index contracts allow you to tailor your position size.
Zero Commissions
The cost of cash index contracts is built into the bid-offer spread of our Standard Account type.
Hedge Risk
Diversify your portfolio by trading Index CFDs and hedge your risks.
What is Index CFD trading?
Stock market indices measure a specific stock market. They represent the value of a country's group of stocks. Investors use the calculated value of a stock index as an indicator of the current value of their component stocks. Every stock exchange has a benchmark stock index, while some have several.
If you do not want to invest in several different shares belonging to a specific stock exchange, trading Index CFDs may be an option to add to your portfolio. CFDs are financial derivatives that track the price movements of an asset without the trader having to own the asset itself. Trading CFDs on indices enables traders to open large positions with a small initial capital, thanks to leverage and low margin requirements. Traders can go long or short depending on their goals and make use of deep liquidity as well as tight spreads which are prime characteristics of major indices.
Indices CFD Spreads
| Symbol | Product | Standard A/c |
|---|---|---|
| Avg | ||
| AUS200 | Australia 200 Index vs Australian Dollar Cash | 1.32 |
| CHINA50 | China A50 Index vs US Dollar Cash | 6.03 |
| EURO50 | Euro 50 Index vs Euro Cash | 1.92 |
| FRA40 | CAC 40 Index vs Euro Cash | 2.3 |
| GER40 | German 40 Index vs Euro Cash | 2.15 |
| HK50 | Hang Seng Index vs Hong Kong Dollar Cash | 5.64 |
| JP225 | Japan 225 Index vs Japanese Yen Cash | 9.19 |
| SPA35 | Spain 35 Index vs Euro Cash | 5.6 |
| UK100 | UK100 Index vs Great Britain Pound Cash | 1.61 |
| US100 | US Tech 100 Index vs US Dollar Cash | 0.66 |
| US30 | US 30 Index vs US Dollar Cash | 1.5 |
| US500 | US 500 Index vs US Dollar Cash | 0.25 |
| USDX | USD Index Basket vs US Dollar Future | 0.04 |
| VIX | VIX Index Cash vs US Dollar Future | 0.21 |
Dividends Adjustments
When holding a Long position on a Cash Index CFD contract that includes dividend-paying stocks, you will be entitled to an amount equal to the amount based on the number of contracts you hold after the close of the business day before the ex-dividend date.
Conversely, if you hold a Short position in a Cash Index CFD which pays a dividend, you will be required to pay an amount based on the number of contracts you hold after the close of the business day before the ex-dividend date. These adjustments may be made either as a cash adjustment into your Webtrader trading account or included in the overnight swap (rollover) rate.
What are the most traded Indices?
Dow Jones
The Dow Jones Industrial Average, often referred to as 'the Dow', is a price-weighted index of the 30 largest companies listed in the US. Salesforce, Boeing and Walt Disney are among the companies that make up the index.
S&P 500
The S&P 500 tracks the 500 largest US stocks and is weighted by market capitalisation. Well known companies on the S&P 500 include Amazon, Apple, Microsoft, Alphabet and Tesla.
FTSE 100
The FTSE 100 is made up of the 100 largest stocks by market capitalisation on the London Stock Exchange. It is commonly referred to as the Footsie and includes major financial institutions such as Lloyds and Barclays.
ASX 200
The ASX 200 tracks the performance of the 200 largest publicly listed companies on the Australian Securities Exchange (ASX). Maintained by S&P Dow Jones Indices, it is widely regarded as the primary benchmark for the Australian equity market.
How to identify what moves an Index's price?
Several factors can influence an index's price, including:
Significant price movement in stocks included in a particular index could be a reason for a change in the index's value.
Why trade Index CFDs?
Trading opportunities
Index CFDs allow traders to speculate on both rising and falling global markets. Traders can make use of fluctuating indices by opening long or short positions depending on the market outlook.
Hedging
Indices can be an effective tool for hedging portfolio risk. For example, if your portfolio consists of a specific sector's shares, you can open a CFD position on a relevant index to balance potential losses from market downturns.
Diversification
Index CFD trading allows traders to gain exposure to global markets without having to invest in individual stocks. For instance, Australian traders can access global indices like the GER 40 or the Hang Seng Index to diversify geographically.
Leverage
One of the prime characteristics of Index CFD trading is leverage; this allows traders to manage larger positions with a smaller initial margin. Risk management is essential when trading with leverage.
How to trade Indices?
One of the ways to trade indices is through Index CFDs on an online trading platform. Index CFDs allow traders to speculate on indices' price movements without owning the underlying stocks.
Amber Fund Management offers Index CFD trading via Webtrader trading platform.
Index CFDs - FAQs
Indices are an important part of global investment. They are used as a benchmark to gauge the performance of an overall market, or a specific sector of a market. Indices show trends and changes in investing patterns. Calculated using an array of different methods, investors often use them as part of their trading strategy.
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