What are Index CFDs?
Stock Indices track the performance of a group of stocks and are highly responsive to economic events. For example, the German Stock Index DAX or Germany 30 represents the value of the 30 largest companies listed on the Frankfurt Stock Exchange.
When you trade Index CFDs, you can capitalise on price movements without actual ownership of the underlying assets. For instance, if you assumed that the price of a stock index would rise, you would place a BUY order, but if you believed it would drop, you order a SELL. If the market moved towards the direction of your placed order, you would make a profit, otherwise, you would make a loss.
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This means that indices tend to be diversified, and you’re effectively getting access to a whole sector or economy with a single trade. Those who are new to financial markets often start with index trading rather than a specific stock or other asset.
What makes trading indices a preferred choice?
Since an index is a digital measure rather than a physical asset, it cannot be purchased directly. For example, you cannot directly own a portion of the FTSE 100 index; instead, you need to buy shares in all the companies that make up the index, based on their weighted proportions.
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Trading indices provides the opportunity to access a wide range of markets, allowing you to benefit from the price movements of these indices without owning their individual components. This approach enables exposure to broad sectors or even the entire economy through a single trade, helping to effectively diversify your investment portfolio.
Additionally, since you do not own the underlying assets directly, short selling is just as accessible as buying. Many trading platforms offer index pricing even after market hours, allowing for 24/7 trading opportunities.
Advantages of indices Trading with INVSS
Hedging Potential
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CFD trading on indices offers a strategic way to protect your portfolio from market fluctuations. Volatility in a single stock doesn’t necessarily affect the overall index price.
Smooth Price Movements
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The composition of indices guarantees that price movements are generally smooth and predictable. This characteristic provides CFD traders with a clearer path for technical analysis and strategy planning.
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High Liquidity
Indices are highly liquid financial assets. This ensures that CFD trading on indices occurs at transparent prices and low spreads throughout market sessions.
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Easy Diversification
Indices offer quick, easy, and practical diversification in the stock market. For example, a single trade on the Dow Jones Industrial Average (DJIA), which tracks the performance of the top 30 publicly listed companies in the U.S., provides instant exposure to major companies like Amazon, Microsoft, Apple, Walmart, and Visa.
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Zero Spread
Benefit from initial spreads starting as low as 0.0 pips on popular currency pairs such as EUR/USD and USD/JPY.
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Leverage up to 1:400
Trade Forex with Leverage of up to 1:400. With as little as $250, you can have a capital impact of $50,000!
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Execution You Can Trust
Benefit from the absence of manual intervention from the dealing desk, along with 99.9% order execution rates.
How Does Indices Trading Work with the INVSS Platform?
Open a live account with INVSS.
Deposit funds into your new account.
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Analyze the markets and choose the product you wish to trade.
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Start trading by opening and monitoring your trade position.
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When you believe the time is right, close the position to complete the trade.
Why is INVSS Your Best Choice?
Double Your Capital
Trade with Leverage of up to 1:400
Safety of Funds
Your funds are kept in separate accounts.
Islamic Accounts
Trade over 600 assets with no swaps!
Regulated and Licensed Broker
FCA, ASIC, DFSA, SCB, CMA, CySEC & BaFin
Technical Support & Customer Service
Arabic support available 24/6 to assist you.
Over 1,200 financial products to trade
Forex, indices, commodities, stocks, and more
FAQs
Multiple payment methods available worldwide
