Indices: Indices Trading | Stock Market | MT4 | Trading | Dow Jones


Why Trading
Indices

Indices or indexes are the most popular trading in the financial market because it’s very easy to analyse and as well as sold or bought from the market.

Reduced Risk

Diversification

Easy to Analyse

Trade with Lower Margins

Indices or Indexes are groupings of a specified number of stocks into one trade-able entity, either representing a particular market or portion of it. Although each stock can be bought and sold on its own, and index can also be traded as a whole.Indices are bought and sold in same way as an individual share.

Indices are mostly region based and investors also use them to gauge a particular economy’s health. Trading on Indices also allows investors to diversify their risk across the whole market instead of investing in a specific company. Major Indices are S&P 500, Dow Jones in USA, FTSE100 in UK, European indices such as DAX30 and Asian Indices such as NIkkei225, Shanghai

Indices Trading Example

Buying SPX500
Opening the Position

Opening price USD $ 2082.60

You decide to buy 1 contract at $ 2082.60 (1 contract=1$ per index point)

Closing the Position

One week later the SPX500 has risen to $2092.60, you decide to take your profit by closing your buying position

Market movement= 2092.60 – 2082.60 = 10

Gross profit on Trade = 2092.60*1-2082.60*1= USD $1,000($1 per Index point)

Indices pairs specifications

Symbol Description Digits Contract Size Typical spread Leverage
(up to)
Swap Long Swap Short Trading Hours open
(Monday)
Close
(Friday)
Break
JPN225 Nikki 225 Index – Japan 2 10 -1.73 -1.58 01:00:00 23:59:59
GER30 DAX – Germany 2 10 -1.21 -0.75 09:00:00 22:59:59
NAS100 Nasdaq 100 2 10 -0.8 -0.77 01:00:00 23:59:59 Daily 23:15:00 – 23:30:00
SPX500 S&P 500 Index 2 10 -0.5 -0.87 01:00:00 23:59:59 Daily 23:15:00 – 23:30:00
UK100 STSE 100 Index 2 10 -0.5 -0.88 09:00:00 22:59:59
US30 US top 30 2 10 -1.95 -2.15 01:00:00 23:59:59 Daily 23:15:00 – 23:30:00

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