Indices Trading Conditions
| Symbol | Minimum Spread | Average Spread | Pip Value | Min price movement | Contract Value |
|---|
|
100GBP
UK 100
|
4.5 | 4.8 | 13.48 | 0.1 | 10 USD |
|
200AUD
Australia 200
|
5.2 | 5.25 | 6.59 | 0.1 | 10 USD |
|
225JPY
Japan 225
|
3 | 3.59 | 0.62 | 0.1 | 100 USD |
|
A50USD
China A50
|
10 | 10 | 10.00 | 0.1 | 10 USD |
|
D40EUR
D40EUR
|
4.7 | 4.73 | 11.75 | 0.1 | 10 USD |
|
E50EUR
Europe 50
|
4.2 | 4.25 | 11.75 | 0.1 | 10 USD |
|
F40EUR
CAC 40
|
5.8 | 5.83 | 11.75 | 0.1 | 10 USD |
|
H50HKD
Hong Kong 50 Cash Index
|
8 | 8.5 | 1.28 | 0.1 | 10 USD |
|
NDXUSD
US Tech 100
|
2.5 | 2.6 | 10.00 | 0.1 | 10 USD |
|
S35EUR
Spain 35 Index
|
6 | 7.82 | 11.75 | 0.1 | 10 USD |
|
SPXUSD
US SPX 500
|
1.5 | 1.75 | 10.00 | 0.1 | 10 USD |
|
U30USD
Wall Street 30
|
2 | 2.3 | 10.00 | 0.1 | 10 USD |
|
USDIDX
US Dollar Index
|
5 | 6 | 10.00 | 0.001 | 1000 USD |
| Symbol | Minimum Spread | Average Spread | Pip Value | Min price movement | Contract Value |
|---|
|
100GBP
UK 100
|
5.5 | 5.8 | 13.48 | 0.1 | 10 USD |
|
200AUD
Australia 200
|
6.2 | 6.26 | 6.59 | 0.1 | 10 USD |
|
225JPY
Japan 225
|
4.2 | 5.12 | 0.62 | 0.1 | 100 USD |
|
A50USD
China A50
|
11 | 11 | 10.00 | 0.1 | 10 USD |
|
D40EUR
D40EUR
|
5.7 | 5.72 | 11.75 | 0.1 | 10 USD |
|
E50EUR
Europe 50
|
5.4 | 5.55 | 11.75 | 0.1 | 10 USD |
|
F40EUR
CAC 40
|
6.8 | 6.85 | 11.75 | 0.1 | 10 USD |
|
H50HKD
Hong Kong 50 Cash Index
|
9 | 9.5 | 1.28 | 0.1 | 10 USD |
|
NDXUSD
US Tech 100
|
3.7 | 3.85 | 10.00 | 0.1 | 10 USD |
|
S35EUR
Spain 35 Index
|
7.2 | 10.51 | 11.75 | 0.1 | 10 USD |
|
SPXUSD
US SPX 500
|
2.7 | 2.88 | 10.00 | 0.1 | 10 USD |
|
U30USD
Wall Street 30
|
3.2 | 3.65 | 10.00 | 0.1 | 10 USD |
|
USDIDX
US Dollar Index
|
20 | 22 | 10.00 | 0.001 | 1000 USD |
Jump into the Market
by Trading Indices
A stock market index is a measurement of the performance of a collection of many stocks, and is generally based around a single sector or country. For example, the S&P 500 tracks some of the largest companies in the US and is seen as an indicator for general US economic health. The Nasdaq-100, on the other hand, tracks one hundred of the largest non-financial companies listed on the Nasdaq stock exchange, and is often used as an indicator of the US tech industry.
As these indices pool the overall performance of many companies,
the risks associated with any single company are avoided, with prices
instead moving based on the macro-level trends.
Index CFDs, which are offered by EC Markets, enable traders to speculate on price movements in various indices without needing to own all of the stocks in an index. Additionally, CFDs use leverage, which boosts both profits and losses, empowering a more versatile trading strategy suited to each trader. Explore market opportunities today with EC Markets’ indices CFDs!
Why Trade Indices With EC Markets
Trade the Whole
Market
Indices represent the movement
of entire markets, lowering risks
associated with individual stocks.
Target Various Sectors
and Countries
Indices are generally focused on
specific industries and
countries, giving traders the
ability to accurately target
promising markets.
Make Educated
Trading Decisions
Indices experience high liquidity,
which creates tight spreads and
makes entering and exiting the
market easy and quick.
Enhanced Liquidity
Facilitates Swift Trades
High trading volumes ensure
narrow spreads, permitting
efficient executions and
significantly reducing slippage
for participants.
Trade CFDs on:
Indices FAQ
Stock market indices (like S&P 500 and Nasdaq-100) are groups of stocks that focus on the economy of a particular industry or country. Instead of buying individual shares, which are subject to significant idiosyncratic risk, trading indices involves using CFDs (Contracts for Difference) to speculate on movements of entire industries and countries, enabling traders to profit from large macroeconomic and industry trends.
To trade indices a trader needs to have an account with a broker that can offer them access to CFDs on the stock market indices that the trader wants to participate in. The trader can then buy or sell based on their speculation of which direction the market will take.
Although there is no single best index to trade, there are several indices that are more popular amongst traders. The top indices are the S&P 500, the Nasdaq-100, the Dow Jones Industrial Average, the FTSE, and DAX 40.
As indices are simply the weighted average prices of a pool of individual stocks, the market value of a stock market index is fundamentally determined by the stocks that comprise it. These stocks themselves are affected by the forces of supply and demand as traders buy and sell individual stocks. As these individual stock prices move, so too does the price of the index.
The key difference between the movement of prices of individual stocks and that of an index is that indices are diversified and as such lower idiosyncratic risk, which is the risk associated with a single company.
An individual stock price is highly affected by events specific to its company, but has less effect on an index that it is in due to being a small part of the entire index. For this reason, index prices move with industry-level trends (for industry specific indices) and macroeconomic trends (for country specific indices).
When trading indices, idiosyncratic risk, which is risk specific to a single company, is largely diversified away. This means that movements in prices of indices follow industry-level trends (for industry-focused indices) or macroeconomic-level trends (for country-focused indices). As such, indices are more predictable, experience less volatility, and fewer gaps, than individual stocks and can be more easily capitalised on by traders.
Yes, trading indices is often a good choice for beginners due to the lower risk, higher liquidity, less volatility, and more predictability of the markets. Additionally information regarding the performance and expected performance of indices is widely available, making it straightforward for new traders to find actionable information.
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