With an award-winning broker, you can trade indices.
Using index Contracts for Difference (CFDs) on world-class trading platforms, WavFX provides exposure to the major global stock indexes at competitive leverage. Trading CFD indices online is an excellent opportunity to engage in the world's most prestigious stock exchanges. You may trade CFD indices contracts from all over the world with WavFX at margins as little as 1%. At AU$1 per point, you can trade AUS200 cash indices. With accessibility to the NASDAQ 100, S&P 500, EUREX, indexes, and more, you can stay ahead of international stock index changes.
We've worked with prominent banking and non-banking financial institutions to create a deep liquidity pool, allowing you to take advantage of the best possible market prices and request execution with ultra-low latency.
Trading CFD indices allows you to speculate on the direction of movement of the underlying index, without actually having physical ownership of any shares.
When you trade indices you get to trade both bullish and bearish price moves, giving you greater trading opportunities.
Competitive leverage means you can choose to increase your exposure with only a small investment from you.
Remember, CFD indices are a leveraged product which mean that you can also magnify your losses.
With powerful platforms like MT5 and Iress, WaveFX offers access to live streaming prices, cutting-edge technical analysis and charting tools.
Explore the advantages of trading indices on WavFX trade platform, one of the most sophisticated trading platforms accessible. The WavFX trade platform platform is available on both desktop and mobile devices and is ready when you are.
The interface can be customised, including the colours of technical indicators.
Trading with a single click.
MarketWatch.
On both Live and Demo accounts, live pricing broadcasting is available. Secure trading with 128-bit encryption.
Expert Consultants (EAs)
Alerts that can be customised.
iOS, Android, and Mac devices are all supported.
Profit from our low-cost, competitive margins, which begin at just 1%.
Cash index agreements allow you to accurately adjust your position size according to your risk management profile, with an exposure of $1 per point change.
The bid offer spread includes the cost of cash index contracts.
By trading CFD indices, you may diversify your portfolio while also hedging your risks.
Stock market indices are used to evaluate the performance of a particular stock market. They indicate the overall, existing, and historical performance of a certain set of companies, as well as the valuation of a group of stocks from a country. Investors use the stock index's calculated value as an indicator of the current worth of their component stocks. By examining current and historical index levels, investors can determine predicted returns over time.
Every stock exchange on the planet has at least one benchmark stock index, and some have more than one. Independent entities, such as big banks or specialised companies like the FTSE Group or the Deutsche Börse, frequently rank these bundles of individual equities. They are also available in a variety of sizes. For example, the FTSE 100 index tracks the market capitalization of the 100 best companies listed on the London Stock Exchange. The ASX 200 index tracks the share prices of the ASX's top 200 firms, whereas the SPI 200 futures contract is a standard equity index futures contract based on the ASX 200 index.
Since it is impossible to monitor all of the firms listed on a stock exchange, traders turn to index trading. Through trading indices, they are capable of measuring the overall performance of the stock market of the country and the economy at large. Traders profit from the price swings of various financial instruments indices by betting on the increase in value of the indices.
Let's say you wish to trade CFDs on the US30, often referred to as the "Dow Jones Industrial Average Index." Assume the US30 is currently trading at:
You decide to buy 5 US30 agreements because you believe the price of the US30 will increase in the future. Your profit margin rate is 5%. This means you'll need to fund your margin account with 5% of the overall position value.
If the price moves to 36000/36010 within the next hour, you have a profitable trade. Sell at the current (bid) price of US30, which is 36000, to close your position.
Observe how a minor cost difference might open up trading opportunities? The pip, or percentage in point, is the name for this little difference. In the world of Indices trading, 1 pip equals a price increase of 1.0, commonly known as an index point.
If the price of XAUUSD | To | You could Gain or Lose for a Long Position | Resulting in a Return of the Initial Margin |
---|---|---|---|
Rises by 1% | 36303.44/36103.44 | USD 1797 | 20% |
Declines by 1% | 35584.56/35594.56 | - USD 1797 | -20% |
Stock indexes give an accurate and dependable approach to evaluate overall market behaviour, with hundreds of equities trading across numerous exchanges. They can also be used to compare individual stock portfolios.
They can provide access to a country's whole sector. You are not required to conduct extensive study on individual businesses or other essentials. Depending on the overall market direction, investors can essentially take a bullish or bearish strategy. They lessen the chance that an individual company's performance will have an impact on your entire portfolio.
Indices have smoother price fluctuations because individual stock activity cannot cause large spikes in volatility. However, this volatility is sufficient to enable you to identify a variety of trading possibilities. Individual stock activity is very dynamic, resulting in a lot of index volatility. Since indexes reflect the wider implications of economic and political developments, they can be useful for traders of many types and trading techniques.
Symbol | Product | Standard A/C | Raw ECN A/c | ||
---|---|---|---|---|---|
Min | Avg | Min | Avg | ||
AUS200 | Australia 200 index Cash | 0.28 | 1.82 | 0.28 | 1.82 |
US30 | US 30 Index Cash | 0.41 | 3.56 | 0.41 | 3.56 |
EURO50 | Euro 50 Index Cash | 0.71 | 2.00 | 0.71 | 2.00 |
FRA40 | CAC40 Index Cash | 0.8 | 1.96 | 0.8 | 1.96 |
GER30 | German 30 Index Cash | 0.31 | 1.73 | 0.31 | 1.73 |
HK50 | Hang Seng Index Cash | 1.55 | 04.09 | 1.55 | 04.09 |
JP225 | Japan 225 Index Cash | 1.91 | 8.74 | 1.91 | 8.74 |
US500 | US 500 Index Cash | 0.2 | 0.54 | 0.2 | 0.54 |
USD Index | US Dollar Index | 0.02 | 0.009 | 0.02 | 0.009 |
UK100 | UK100 Index Cash | 0.31 | 1.65 | 0.31 | 1.65 |
SPA35 | SPA35 Cash Index | 6.5 | 6.5 | 6.5 | 6.5 |
US100 | US Tech 100 Index Cash | 0.9 | 1.56 | 0.9 | 1.56 |
CHINA50 | China A50 Index Cash | 9.41 | 13.17 | 9.41 | 13.17 |
VIX | Volatility Index | 0.14 | 0.05 | 0.14 | 0.05 |
Available Indices | ||
---|---|---|
NASDAQ 100 E-Mini | DJIA E-Mini (CBOT) | Mini SPI 200 |
Nikkei 225 (CME) | DAX Index | SPI 200 |
S&P 500 E-Mini | EURO Stoxx 50 |
You will be eligible to a sum equal to the amount based on the number of contracts you possess after the end of the business day before the ex-dividend date if you have an open Long position on a Cash Index CFD contract that delivers a dividend.
If you have an open Short position in a Cash Index CFD that pays a dividend, you must pay a sum depending on the number of contracts you possess after the closure of the business day before the ex payout date. This adjustment can be performed as a cash adjustment to your WavFX trading account or as a swap rate adjustment at the conclusion of the day.
Stock indices are calculated using a variety of approaches by financial experts and investors. The following are a few of the most prevalent methodologies:
Weighted Market
Capitalization Method
The stocks on the Index are weighted using the market valuation of each firm in this manner. This strategy is used by major indices such as the S&P 500 and the ASX 200.
The Method of Equal Weighting
As the name implies, all stocks are entitled to equal weighting depending on their returns. Each stock's return is determined, then totaled together and divided by the full number of stocks in the Index.
The Price-Weighted Method
To calculate a weighted average, this approach uses the prices of relevant stocks. Stocks with a greater share price, regardless of market capitalization, are weighted more heavily. The price weighted technique is used by the Dow Jones in the U.S.
There are a number of elements that can influence the markets for indices.
Trading opportunities: Through CFDs, traders can benefit from both rising and falling Indices prices.
Hedging: Indices can be particularly useful for hedging strategies as you can invest in an index of a particular sector. If the portfolio of a trader was made up of stocks from the financial sector, they could trade the NASDAQ 100 to counter any significant price movements in their current portfolio.
Diversification: Indices CFDs allow traders to gain exposure to global markets without having to invest in individual stocks.
Leverage: The ability to trade using leverage is one of the key attractions of CFD trading. Traders can open positions of a much higher value than the funds available in their trading account. Learn more about Margin Trading.
CFDs on an online trading platform are a convenient method of trading Indices. Traders can bet on Indices without possessing the underlying asset using these financial instruments.The biggest and most popular CFD trading platform, used by WavFX to trade Indices. Check out How to Trade Indices for more information.
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Incorporate : The Registrar of Companies for England and Wales, hereby certifies that WAVFX TRADING INDEX LIMITED is this day incorporated under the Companies Act 2006 as a private company, that the company is limited by shares, and the situation of its registered office is in England and Wales. Given at Companies House, Cardiff, on 25th September 2005. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendment and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines, 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well as to provide brokerage, training and managed account services in currencies, commodities, indexes, CFDs and leveraged financial instruments.
Risk Warning : Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.