Indices CFDs
Trade on the world’s biggest stock markets 24/5 with the most powerful tools, lower spreads and expert analysis.
How to trade indices CFDs Trading CFD index involves several strategic steps.
First, select a reputable online broker offering index CFD trading, ensuring it is regulated and provides competitive spreads. Open a trading account, complete verification processes, and fund your account with sufficient capital.
Choose the specific index you want to trade, such as the Dow Jones, S&P 500, or China A50. Conduct thorough market analysis using technical and fundamental analysis techniques. Evaluate economic indicators, market trends, and global events that might impact index performance.
Develop a robust trading plan that includes clear entry and exit strategies, risk management rules, and position sizing. Utilize stop-loss and take-profit orders to manage potential losses and secure gains. Practice with a demo account to refine your strategy before committing real capital.
Monitor your trades closely, remain informed about market conditions, and be prepared to adjust your strategy based on changing market dynamics. Always understand the risks involved and never invest more than you can afford to lose.
Discover Indices CFDs
Why trade Indices CFDs at todayets.com
- Take a position on the stock markets one of the world’s major economies
- Go long or short depending on your view of the stock market
- Low spreads from 1pt
Ways to Trade Indices
Trade CFDs – A CFD account will allow you to trade indices like the Dow Jones, FTSE 100 and much more.
How indexes are calculated?
Indexes are calculated through complex methodologies that reflect the collective performance of selected stocks within a specific market or sector. Most indexes use market capitalization-weighted calculations, where larger companies have a more significant impact on the index’s value. This means that price movements of companies with higher market capitalization will influence the index more substantially than smaller companies.
Different indices employ varied calculation methods, such as price-weighted (like the Dow Jones Industrial Average) or float-adjusted market capitalization-weighted (like the S&P 500). Calculation processes involve continuous real-time adjustments based on individual stock prices, accounting for corporate actions like stock splits, dividends, and changes in constituent companies to maintain an accurate representation of market performance.
Modern indices employ complex algorithms that account for corporate actions like stock splits, dividend payments, and changes in constituent companies. Regular rebalancing ensures that the index continues to represent the most relevant and significant companies in a particular market or sector. This dynamic approach allows indices to serve as critical barometers of market performance, providing investors with a comprehensive snapshot of economic trends and market health.
Popular Indices for CFD Trading
| Description | Dukascopy Instrument Name | Index components | Point value |
|---|---|---|---|
| Australia 200 Index | AUS.IDX | Australia’s top 200 companies | 0.01 AUD |
| Spain 35 Index | ESP.IDX/EUR | The 35 most traded companies in Spain | 0.01 EUR |
| EU Stocks 50 Index | EUS.IDX/EUR | Top 50 companies in Europe | 0.01 EUR |
| Hong Kong Index | HKG.IDX/HKD | Top companies in Hong Kong | 0.01 HKD |
| Germany 40 Index | DEU.IDX/EUR | 40 of the largest German companies | 0.01 EUR |
| France 40 Index | FRA.IDX/EUR | The 40 largest companies in France | 0.01 EUR |
| Switzerland 20 Index | CHE.IDX/CHF | 20 Swiss blue-chip companies | 0.01 CHF |
| UK 100 Index | GBR.IDX/GBP | 100 largest UK companies by capitalisation | 0.01 GBP |
| Japan 200+ Index | JPN.IDX/JPY | Over 200 leading Japanese firms | 0.01 JPY |
| US 30 Index | USA30.IDX/USD | 30 of the largest US companies | 0.01 USD |
| US 100 Tech Index | USATECH.IDX/USD | 100 of the major computer hardware, software, biotechnology, and telecommunications companies in the US | 0.01 USD |
| US 500 Index | USA500.IDX/USD | Top 500 US companies | 0.01 USD |
| US Small Cap 2000 Index | USSC2000.IDX/USD | 2000 US small capitalisation companies | 0.01 USD |
| China A50 | CHI.IDX/USD | China’s 50 largest A-share companies | 0.01 USD |
| US Dollar Index | DOLLAR.IDX/USD | US Dollar Index Basket | 0.01 USD |
| Netherlands 25 Index | NLD.IDX/EUR | Top 25 companies in the Netherlands | 0.01 EUR |
| Singapore Blue Chip Index | SGD.IDX/SGD | Top companies in Singapore | 0.01 SGD |
| Poland 20 Index | PLN.IDX/PLN | Top 20 companies in Poland | 0.01 PLN |
| Volatility Index | VOL.IDX/USD | Market volatility expectations for the next 30 days | 0.1 USD |
| South Africa 40 Index | SOA.IDX/ZAR | Top 40 companies in Africa | 0.1 ZAR |
| Italy 40 Index | ITA.IDX/EUR | Top 40 companies in Italy | 0.01 EUR |