Why and How-to trade indices

One of the biggest benefits of trading indices is the ability to avoid stock risk. Traditionally if you buy a single stock, you are invested in just one, and your entire investment position is exposed to the volatility of just one company’s stock. By trading indices, you mitigate this risk as the index performance is based on a “basket” or group of companies’ stock, instead of just one single company stock

Due to the high trading threshold, stock index trading usually requires a large investment amount, while stock index CFDs allow traders to trade smaller contracts, so they can buy a basket of stocks at lower capital requirements and easily enter the investment arena.

It is not the case that you may buy a stock only when the market is predicted to rise. With index CFDs, you have the ability to go both ‘long’ and ‘short’, meaning you can take advantage of the stock indices prices rising or falling.

Simply, create an account and log in. If you don’t have an existing account with us, you can register here.

Select the index you want to trade; choose among popular indices in the US, Europe, Asia, and Australia, such as the Australia 200, NAS100, Hong Kong 50, Germany 30, etc.

Decide on the direction of the market. Choose to either do a buy (long) or sell (short) position.

Set your exit points; Take profit (TP), and Stop Loss (SL). Monitor your trade!