Why would you hold your money in the bank or your wallet? Join FXCentrum & Let your investments Grow!
Indices measure the performance of a group of stocks in an exchange.
Here we’ll talk about how you can do indices trading on FXC!
Indices may use a number — whether small or large — of stocks to measure the performance of an entire stock exchange. Examples are the S&P 500, Dow Jones 30, and the DAX 40, which you may have heard of before.
With FXC, indices trading involves buying and selling index futures CFDs. These are single instruments that, in essence, allow you to trade a large number of stocks in one click.
Take the S&P 500 for example. It is an index of 500 leading publicly traded companies in the US, so by buying the CFD for S&P 500 you are essentially “betting” on all 500 companies and, in a way, the US economy as a whole. Price movements of the S&P 500 are affected by many factors, including macroeconomic data, currency movements, or news within the country. Such price movements in turn affect other aspects, such as the capital gains you make on US equity.
Apart from the weather, there is no information that is more widely reported than the current levels of the Dow Jones and the S&P 500. This is because they provide information about financial market health and market direction.
Indices are measured in points and bought in the currency of the country where the index is located. These points represent the total value of the companies in the index, but not in a 1:1 ratio, as the total value of the companies in an index could be in the billions of dollars. CFD stands for contract for difference. These are contracts that essentially allow you to “bet” on the future price of the index you are interested in at a certain date in the future.
You don’t own the actual index. What you do when you make a trade on our platform is take either a long or short position on a pair. So, if for example, you hold a long position on a CFD, you are betting the price of the underlying index will go up in the future. If it does go up, you make money! If you hold a short position, you are betting it goes down.
Don’t know what long or short positions are? Click here to see our explanations of basic trading terminology.
Indices trading with FXCentrum
We offer index CFDs such as for the S&P 500, FTSE 100 and Nikkei 225 and many more.
The advantage of buying CFDs over the indices themselves is that leverage can be provided, and you can make a lot more profit with a lot less money.
At FXC we offer leverages of up to 1:1000. Leverage of 1:1000 means we can lend you $1000 for every $1 you invest. However, leverage can be risky, which is why we allow you to choose smaller leverage or even none at all, depending on the margin requirements of the particular instrument.
We also offer very low spreads from 0.3 pips. Other brokers may offer even lower spreads but can charge commissions on top, which could make it even more expensive in the end.
We have 0% deposit and withdrawal fees (every first withdrawal in a month is free). We are connected to all the payment providers you need, including Visa, Mastercard, OnlineNaira, and Wire Transfer. If you don’t see your favorite provider, please contact us at firstname.lastname@example.org.
For your risk management needs, we recommend contacting our FXC support team to help you book a consultation with our investment specialist manager.
Come do indices, forex, metals, commodities, stocks, ETFs, and cryptocurrencies trading with FXC and enjoy 0 commissions, high leverage, low spreads, and more advantages like a 100% first deposit bonus!