INDICES OVERVIEW

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** Graphs are for illustrative purposes only and are not live tradeable prices**
You have probably heard of the Dow Jones or the S&P, perhaps even Nasdaq. Originating in the USA, these are some of the biggest indices in the world. Indices are a representation of a group of stocks, from as few as ten to a hundred or more. Indices are an aggregate of the movement of a group of stocks, reflecting market conditions and from a broader perspective, an idea of how the economy of that specific country is doing.
With CFI, you can trade a diversified number of indices including US, European and Asian products. If you have a certain view on a specific stock market or the stocks of a region, indices are your instrument of choice as they allow you to have directional views on a large number of companies within one product, instead of buying or selling individuals stocks.
The advantage of cash indices is that they have no expiry date so you can hold them for a short period or an extended time. Furthermore, they replicate the hours of the future contracts that are traded on exchanges.
Spreads
A spread is the difference between the price you can buy a certain instrument and the price you can sell that same instrument. Given that markets are all about supply and demand, the more traded a product is, the smaller the spread between the buying and selling price. In contrast, a less liquid instrument could see a wide spread as not enough people are buying or selling it.
At CFI, we are connected to several liquidity providers and exchanges and offering competitive spreads is something we take very seriously. We are constantly working to provide even lower spreads and with recent advances in technology and deep enough liquidity, our efforts continue to translate into reality.
SymbolSpread for all accountsTrading Hours (UK)
GER301.723:01-21:59*
UK1002.523:01-21:55*
USA301.623:01-21:59**
USA1001.8123:01-21:59**
USA5000.8523:01-21:59**
JPN2251223:01-21:55*
HKD50802:16-04:59,06:01-09:29,10:16-19:59
CAC401.823:01-21:59*
Target spreads for the available Indices
*Trading stops between 21:15-21:30 and Friday Market is closed at 21:15
** Trading stops between 21:15 & 21:30
Competitive swaps
Swaps, also known as rollovers, are interest rate amounts charged or earned for holding a buy or sell position overnight. The calculation takes into consideration the interest rate differential between two financial instruments.
Swaps are also applicable on Indices and vary for several reasons, including overnight interest rates. Swap free accounts are also available.
Trading example
Say you see that German stocks may be undervalued on the day and you decide to buy 1 GER30 lot at current market price. Assume the current price is 11999/12000 which denotes a bid price of 11999 and an ask price of 12000 and you open a buy a position at 12000. Later in the day, the GER30 climbs to 12050/12051 and you decide to close the position. You sell the lot at 12050 which is the bid price. Your gain on the day is 12050-12000 – 50 or 50 points. At 25 EUR per point, you gain 1250 Euros.
Please note the above example is hypothetical in nature and does not necessarily reflect real conditions Also note that all calculations will be in USD, since our MT5 platform is based in USD as the main currency.
SymbolSwap (Long)Swap (Short)
US100_Spot-20.39-18.4
US30_SPOT-23.9-21.57
US500_SPOT-14.7-13.13
GER30_SPOT-19.43-30.98
UK100_SPOT-4.9-4.79
CAC40_SPOT-11.18-17.85
HKD50_SPOT-11.28-10.29
JPN225_SPOT-10.19-10.66
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*If you’re new to CFD trading, we recommend starting out with our free DEMO account
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