Index Trading

Stock indices measure the price performance of the stock markets. You can buy and sell CFDs on major global indices just like individual shares. With Traze, you can take advantage of broad moves in the stock markets on the world´s largest financial exchanges.

Trading stock index CFDs allows you to leverage a sizeable return with a small sum, meaning your capital goes further. Open an account on Traze now to level up your investment opportunities.

What is an index CFD?

A stock index (or plural indices) is a barometer of the overall performance of the stock markets. Roughly speaking, an index helps traders understand the way the market is moving — and make predictions for the future. 

You can use a CFD (Contract for Difference) to make speculations on stock indices. In taking a CFD position, a trader is essentially agreeing to exchange the difference in the price of an index from one-time-period to another. Trading index CFDs is extremely popular. They’re available for all the key indices around the world, which enables traders to participate in world markets no matter where they are located themselves. 

Stock52 Week RangeChart (24H)
Dow 30
S&P 500
DAX 40
CAC 40
CSI 300 Index
Hang Seng Index
FTSE China A50 Index
US Dollar Index
Nikkei 225
Australia S&P ASX 200 Index

What are the advantages of trading index CFDs?

  • A great entry point to the world of trading 
    Index CFDs are a great introduction to trading since they follow key global markets.
  • Less risk than trading individual shares 
    With index CFDs, you’re spreading your risk across the whole market, instead of one single company. 
  • Make your capital go further 
    You only need a small sum to leverage a sizeable return with a CFD, meaning your capital goes further. 

More about Index CFDs

A CFD is a Contract for Difference. It’s a financial product that allows you to speculate on future changes in the market. A stock index measures the price performance of global stock markets. So, when you trade indices with CFDs, you’re agreeing to exchange the difference in the price of an index from one time period to another. This gives CFDs the advantage of providing a potentially large margin to traders. 

With the major indexes, this margin typically stands at around 1 to 3% of the value of the index. With a margin of 1%, you would only need $1,000 in cash to leverage $100,000 on an index CFD. This is what makes CFDs so attractive to traders — you can make your capital go further without having to expose yourself to the risks of investing in a single company. 

The most popular stock indices are the top five global markets. 

First, there’s the Standard & Poor’s 500 (referred to in shorthand as the S&P 500). This is an American stock market index based on the market capitalization of the largest 500 companies listed on the New York Stock Exchange (NYSE) or the NASDAQ. The S&P 500 is very diverse and contains more constituents than the other US indices. representing about 80% of the total value of American stock markets. 

Then there’s the Dow Jones Industrial Average, or the Dow, which is another stock market index measuring the performance of America’s 30 largest companies. 

Another popular index is the Financial Times Stock Exchange Index 100 (FTSE 100). This index represents the top 100 companies trading on the UK market. 

The NASDAQ 100 is very similar to the FTSE 100, acting as a barometer of the top 100 US companies. It stands for the National Association of Securities Dealers Automated Quotations System and is the world’s second-largest stock exchange based on market capitalization. Typically, the NASDAQ carries large technology companies including Cisco, Microsoft, Apple, and Dell. 

Finally, there’s also the DAX, or the Deutscher Aktienindex. This German stock market index comprises 30 of the major German companies trading on the Frankfurt Stock Exchange. Together, these five stock indices are the most popularly traded in the West. 

It’s easy to start trading index CFDs with Traze. Here’s how to start your crystal-clear trading experience: 

  • First, you need to register for a trading account. You can do this online, and the process only takes minutes. 
  • Once you’ve added your personal information and verified your identity, you’ll need to deposit some funds to start trading with. The minimum deposit varies depending on the account you choose ($50 is the minimum for a Mini Trading account). 
  • After successfully injecting some capital into your account, you’re ready to trade! Simply download the Traze trading platform and take your first steps into the world of index CFDs. 

A stock market exchange is a marketplace where stocks are traded throughout the day. They’re located in all global capitals, including New York, London, Frankfurt, Shanghai, and Tokyo, which means they operate in different time zones. 

Trading is usually conducted from Monday to Friday of each week, with markets closing at weekends and national holidays (which vary from location to location). Opening and closing times differ slightly from region to region, but markets generally open around 9:30 am local time, and close at 4:30 pm. 

At Traze, we pride ourselves on providing informative and educational resources to help all types of traders. 

If you’re a first-time trader, you can make use of our demo account, which enables you to practice trading CFDs for free. 

Plus, we offer CFD trading tutorials with valuable guides and tips that even experienced traders can benefit from. 

Our trading platform is state-of-the-art, and comes with advanced analytical tools and indicators, and comprehensive statements and reporting to assist you with all your technical analysis. That means you can keep learning about indices as you trade. 

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Risk Warning: Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money rapidly due to leverage. You may be required to make further deposits in order to meet your margin requirements. You should consider whether you understand how CFDs work and whether you can afford to take the risk. The historical financial performance of any underlying instrument is no guarantee or indicator of future performance. Trading financial derivatives may not be suitable for all investors. Please ensure that you fully understand the risks involved, and seek independent advice if necessary.