Stock Indices

Indices provide insights into the performance of the stock market and are some of the most popular assets across the financial markets. Find out which indices are currently available and our contract specifications below.

INSTRUMENT Country Currency Exchange Expiration Typical Spread (Pips) Margin Standard Contract Size Trading Hours GMT
S&P 500 US USD CME Mar,Jun,Sep,Dec 23 2.00% 50 23:01-21:15 & 21:30-21:59
NASDAQ 100 US USD CME Mar,Jun,Sep,Dec 25 2.00% 20 23:01-21:15 & 21:30-21:59
Dow US USD CBOT Mar,Jun,Sep,Dec 35 2.00% 5 23:01-21:15 & 21:30-21:59
CAC 40 France EUR EURONEXT Mar,Jun,Sep,Dec 35 2.00% 10 07:01-20:59
DAX 30 Germany EUR EUREX Mar,Jun,Sep,Dec 35 2.00% 25 07:02-20:59
FTSE 100 UK GBP ICE EUR Mar,Jun,Sep,Dec 35 2.00% 10 01:01-20:59
RUSSELL2000 US USD ICE US Mar,Jun,Sep,Dec 52 2.00% 100 MON 01:01-22:00 TUE-FRI 22:00-22:59 & 01:01-22:00
DJXX EU EUR EUREX Mar,Jun,Sep,Dec 60 2.00% 10 07:01-20:59
ASX Australia AUD Mar,Jun,Sep,Dec 60 2.00% 100 22:51-05:29-06:11-20:59
JSE SA ZAR JSE Mar,Jun,Sep,Dec 35 2.00% 50 06:31-15:29
SMI Switzerland CHF EUREX Mar,Jun,Sep,Dec 70 2.00% 10 07:01-20:59
HANG Hong Kong HKD HKFE Monthly 60 2.00% 50 01:16-04:00 & 05:00-08:30 & 09:15-16:59
TOPIX Japan JPY TSE Mar,Jun,Sep,Dec 50 2.00% 1000 00:46-07:10 & 08:30-21:24
IBEX Spain EUR EUREX Monthly 90 2.00% 10 08:01-18:59
AEX Amsterdam EUR EUREX Mar,Jun,Sep,Dec 51 2.00% 200 07:01-20:59
NK Tokyo USD SGX Mar,Jun,Sep,Dec 80 2.00% 5 23:01-21:15 & 21:30-21:59
SPMIB Italy EUR EUREX Mar,Jun,Sep,Dec 100 2.00% 2 20:01-16:39
INSTRUMENT Country Currency Exchange Expiration Typical Spread (Pips) Margin Standard Contract Size Trading Hours GMT
Visa - 3412 04/01/2016 04/01/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016
Visa - 3412 04/01/2016 04/01/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016
Visa - 3412 04/01/2016 04/01/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016 03/01/2016 - 03/31/2016
* Overnight Iinterest bothfor buy and sell are positions is -0.0028%
* Overnight Iinterest bothfor buy and sell are positions is -0.0028%

What is indices trading?

A stock index tracks and quotes the price of a combination of stocks, where each stock’s value in the index is averaged out according to its market capitalization.

Highly valuable stocks typically represent enjoy more weight in the index valuation, however, changes in the value of a stock index are typically the result of price swings affecting the majority of the companies that make up the index itself.

Stock indices may consist of the best-performing stocks in a country or region, or may comprise the stocks of companies from a specific industry such as mining, technology or agriculture.

Popular stock indices include the Dow Jones and S&P 500 in the U.S as well as DAX and Nikkei in Europe and Asia Pacific respectively.

Indices trading advantages

  • Diversification and lower risk profile
  • Buy or sell capability
  • Higher profit potential with powerful leverage

What affects the value of indices?

As stated above, the value of an index depends on the average price of the stocks included in the index. When the overall price of the stocks that comprise the index goes up, so does the value of the index.

 

On the other hand, when the companies in the index aren’t faring well, the price of their stock will go down and subsequently so will the value of the index.

 

Therefore, traders who aim to succeed in trading indices need to monitor closely the companies that the index tracks and their performance on the world stage. Economic news and political events that may impact the overall economy of a country or region are equally important to index traders as indices have proven to be an accurate indicator of the economy as a whole.

MORE INFO:

Instrument– The FX currency pair or underlying asset of the CFD product to be traded.

Country– The country that the equity or bond is based in.

Standard Contract size– The lot size traded on each platform (Note: CM Trading in MT4 represents the standard lot size).

Standard Spread– The difference between the BID & the ASK price quote for each instrument under normal market conditions.

Margin Per Lot– The required margin to open a single lot of each instrument (Note: It is shown in notional terms).

Overnight Interest Sell/Buy– The overnight interest debited/credited in daily % terms for each instrument.

Trading Hours– The time that trading is available for the specified instrument.

Exchange– The exchange of the underlying asset.

Risk Warning:
Trading CFD’s on margin carries a high level of risk, and may not be suitable for all investors.

The Stock Indices Trading Conditions display the ‘Spread Over Market’ for Stock Index Instruments unless otherwise stated. The ‘Spread Over Market’ is the Mark-up CM TRADING adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 1

For a 1 index S&P500 Trade, with a Spread of 75 Pips ($0.75), the calculation is as follows:

0.75 X 1 = $0.75*

CM TRADING is compensated through the Bid-Ask spread, except when otherwise stated.

CM TRADING does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Stock Indices Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example

For a 1 Index S&P500 Trade, with a Market Price of $1400 and a Margin Requirement of 0.50%, the calculation is as follows:

Percentage Margin Requirement: 1 x 1, 400 x 0.005 = $7.00*

During Indices Roll Over week if a new position on the new contract is opened whilst holding an old contract, margin will be equal to holding 2 positions

The Stock Indices Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Overnight Interest amount:

Trade Size x End of Day Market Price x Daily Overnight Interest = Daily Overnight Interest Charged/Paid*

*Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Example

For a 1 Index S&P500 Trade, with an End of Day Market Price of $2000 and a Daily Overnight Interest Buy (or Sell) rate of -0.0028%, and subject to a charge for 1 day, the calculation is as follows:

1 x 2,000 x -0.000028 = -0.056 = -$0.06* rounded.

Note: CM TRADING platforms display overnight interest (swaps) in annualised terms.

Did you know?

Trading indices is highly popular among conservative investors who prefer lower-risk market opportunities because, due to the weight distribution of each stock in the index, volatility is greatly decreased.

 

Also, since indices are generally composed of large and well-performing companies, they tend to appreciate over time and are therefore highly stable and lucrative investment vehicles.

 

One of the most popular and widely traded indices across the global equity markets is the Dow Jones or Dow Jones Industrial Average Index (DJIA 30). While it used to consist of the mainly industrial stocks, today it tracks 30 of the best-performing companies in the U.S.