Indices

What are Indices?

Indices, or indexes as they are also known, are assets which are grouped together; either representing a specific sector of a market or a market in its entirety. A stock market index’s overall level is calculated by taking into account the current prices of all the different assets within the index; this means that shifts in individual stock prices when taken as a whole add can lead to the index rising or falling in value.

Daily Rolling Index Trading

Brokerages such as ETX Capital offer daily rolling trading on these indices which is available on a twenty four hour basis during the financial week, allowing traders to take a position in indices even when they are not officially open. This works because the prices that spread betting firms offer are predicated on future prices rather than current ones, which means that the price movement out of hours is based on the price which the brokerage calculates that the index will be trading at come the open.

Trading Indices with ETX Capital

ETX Capital offers a wide variety of different indices for clients to trade, with 20 different indices available on the ETX TraderPro platform and multiple options on the company’s Trader, Binary and MT4 platforms as well. If you already have an account with ETX Capital sign in to trade right now. If you’d like to open an account with ETX Capital, click the link below to complete our quick and easy sign-up process.

Binary Options

A binary option helps control your exposure when you invest £100 on a trade you will only ever be risking that £100 investment. However, with leverage products such as spread bets you are subject to much greater risk. For example, if you brought £10 per point on the FTSE100 priced at 6300, you would be subject to the full exposure of £63,000. It is clear why Binary Options has gained huge popularity with index traders who prefer more transparent trades.

Trade Index CFDs at Plus500

Trade the FTSE100 with no commission (only spread)

• No commissions! - fixed spreads
• No commissions, to view our fees click here. Low spreads between the buy and sell prices.
• Trade indices with leverage
• Up to 1:300 leverage and low margin demands. Use small amounts of capital to obtain the effect of trading in high amounts.
• Free real-time index rates

 

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