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Index Trading

One of the most approachable ways to follow and invest in the fortunes of the world’s largest companies and sectors.

What’s an Index?

An Index is a way of measuring the performance of a specific sector or group of companies. For example, the Dow Jones Industrial Average – commonly called the Dow – is a stock market Index representing the overall value of 30 of the largest publicly owned companies in the USA. There are innumerable stock indices around the world, with each one measuring a different aspect of global and local markets.

How does Index Trading work?
When you trade Indices with AxiTrader you’re not buying a physical asset, like a stock. Instead, you’re simply trading on the realtime price movements of the underlying instrument on the open market. This is known as CFD (Contract for Difference) trading.

 

Example 1: Profiting from a price increase

Let’s say the Dow Jones index has a current market value of 25,585 points but you believe its value will increase within a certain time period. You take out a CFD contract on the index, the value does improve by the time the contract expires and you make a profit based on the difference between the buy and sell price.

However, if the index value was to fall below the buy price at the point when the contract expires, you’d lose the trade.

Example 2: Profiting from a price decrease

Let’s again say the Dow has a market value of 25,585 points, but this time you believe it is overvalued so you take out a CFD contract speculating that the price will fall by a certain time. If it does fall by the time the contract expires, you’d make a profit. If it had risen, you’d incur a loss.

Profiting from downward price movements is one of the unique aspects of CFD trading; if you were investing in physical company stock you could only profit if the value of the company increased.

Our Indices

AxiTrader offers a carefully curated list of top Indices, featuring some the most famous names in the business world and designed to give you a wide range of trading opportunities.

Using leverage to trade Indices

Trading Indices as CFDs with AxiTrader means you’re able to take advantage of leverage. This means you can use a small amount of capital to gain full exposure to a trade. It’s important to understand that while applying leverage offers the potential for larger profits from a smaller outlay, it can also increase risk and lead to larger losses, sometimes greater that the margin in your account.

Why trade Index CFDs?

  • Realtime pricing, linked to actual stock market performance
  • No brokerage fees & no commission on standard accounts
  • Potential to profit in either price direction
  • Super competitive spreads with ultra fast execution speed
  • Low margins - as little as 1%
  • Includes top indices such as FTSE, Dow Jones and S&P

PsyQuation

Built to utilise Artificial Intelligence and Machine Learning, PsyQuation is a highly advanced trading analytics platform designed to reduce your trading mistakes and provide tailored trade suggestions.

Autochartist

Autochartist continuously scans the market for customised trade opportunities, based on realtime pricing and your specific trade setups, then alerts you to potential trades.

Indices FAQs

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