Index trading is an increasingly popular way of trading.
This type of trading allows you to trade the entire market rather than an individual stock and is more representative of the economy as a whole. Indices are usually fast-moving, and can be ideal for short-term trading. However, CFD indices have no contract expiry and can be held for as long as required.
An index consists of a representative sample of companies from a particular stock market. For example, the FTSE 100 index (also known as the UK 100) consists of the top 100 UK listed companies by market capitalisation. Other examples of indices available for trading include the S&P 500, DJIA, DAX and CAC 40. Accendo Markets offers these and many more world indices for trading.
Whether you’re experienced or an index trading novice, access to indices may be a useful tool for you. Index trading works by setting your exposure on a ‘per point’ basis. For example, if you decided to ‘buy’ the UK100 index at £10 per point, you would make or lose £10 for each point that the index rises or falls. You can use an index exposure to hedge other investments, or take a naked long/short position for absolute returns.
You can trade indices online with us at the touch of a button. Alternatively, you can contact your Accendo Markets trader for guidance or trade execution.