Because index CFD are leveraged products, you can trade on them while only paying a fraction of the total contract value, which means more profit and loss potential than non-leveraged instruments. The ability to go long or short gives maximum market agility, making index CFD trading popular amongst speculative traders who want to be able to adapt their strategy quickly.
Index CFD Trading
Why do Financial Investors Trade Index CFDs
Go Long or Short
Index CFD (contracts for difference) trading allows investors the ability to go long or short and the opportunity to make money in a falling market without the need to put up large amounts of capital, making them a more flexible way of investing. Index CFD trading is often used for speculative purposes. Index CFD can be used to speculate on the future movement of market prices, irrespective of whether the price of the underlying product is rising or falling.
Leverage
Index CFDs are leveraged products that allow you to trade while only paying a fraction of the total value of the contract. When you trade a leveraged product, you can potentially magnify your return on investment. But with great potential returns also comes greater risk. The higher leverage can result in losses that could exceed your initial deposit.
Range of Markets
Investors can use index CFDs to gain instant exposure to major global markets including the UK, US, Europe and Asia. See our range of index CFD trading markets.
Margined Trading
Index CFDs are generally offered for margin trading, which means that traders are only required to deposit a portion of the actual trade size in each transaction. For example, if you have an index CFD trade worth $1,000 (either in a short or long position) and your provider’s margin requirement is 4%, this would mean you only need $40 to open the position.
Flexible Contract Size
It is generally recommended that less experienced traders use smaller lot sizes until they have developed a successful trading strategy that is more consistently profitable. More experienced traders can choose to put more capital at risk so that they do not feel limited in the way their trades are structured.
Hedge Positions
One method that traders use to limit potential risk during market volatility is the implementation of ‘hedged’ positions. For example, if you have a long position on an index CFD that is accruing losses, you can open a position in the opposite position using a short index CFD.
Find out our trading rules:
| NAS100 | SPX500 | US30 | HKG33 | A50 | |
| Minimum lot of orders issued each time | 1 lot | ||||
| Maximum lot of orders issued each time (include position and limit/stop orders) |
50 lots | 20 lots | |||
| Commission | Free | ||||
| Maximum leverage | 1:200 | ||||
| Initial margin (per lot) (at 1:200) | USD30 | USD125 | USD110 | USD37.50 | USD75 |
| Margin closeout (per lot) | 20% of initial margin | ||||
| Trading hours (GMT) [1] |
Summer time Sunday 22:00 - Friday 20:15 Daily Break: 20:15 - 22:00
Winter time Sunday 23:00 - Friday 21:15 Daily Break: 21:15 - 23:00 |
Summer time Sunday 22:00 - Friday 20:15 Daily Break: 20:15 - 22:00
Winter time Sunday 23:00 - Friday 21:15 Daily Break: 21:15 - 23:00 |
Summer time Sunday 22:00 - Friday 20:15 Daily Break: 20:15 - 22:00
Winter time Sunday 23:00 - Friday 21:15 Daily Break: 21:15 - 23:00 |
Summer time Monday 01:15 - Friday 16:45 Daily Break: 04:00 - 05:00 & 08:30 - 09:15
Winter time Monday 01:15 - Friday 16:45 Daily Break: 04:00 - 05:00 & 08:30 - 09:15 |
Summer time Monday 01:05 - Friday 20:30 Daily Break: 08:30 - 09:00 & 20:30 - 01:05
Winter time Monday 01:05 - Friday 20:30 Daily Break: 08:30 - 09:00 & 20:30 - 01:05 |
- Trading hours may be adjusted due to holidays. If you would like to confirm our current trading hours, please contact us.
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