Stock Indices

Indices provide insights into the performance of the stock market and are some of the most popular assets across the financial markets. Find out which indices are currently available and our contract specifications below.

InstrumentMT4 DescriptionMin. Price FluctuationLot size LeverageSwap Long (in points)Swap Short (in points)Trading hours (GMT+2)
Instrument:AEXMT4 Description:AMSTERDAM25Min. Price Fluctuation:0.01Lot size:200Leverage:50:1Swap Long (in points):-5.5 Swap Short (in points):-5.6 Trading hours (GMT+2):Mon-Fri 09:01-22:59
Instrument:ASXMT4 Description:AU200Min. Price Fluctuation:0.01Lot size:100Leverage:50:1Swap Long (in points):-24.3441Swap Short (in points):-22.5969Trading hours (GMT+2):Mon-Fri 01:51-08:30, 09:10-22:59
Instrument:CACMT4 Description:FRANCE40Min. Price Fluctuation:0.01Lot size:10Leverage:50:1Swap Long (in points):-560.988208Swap Short (in points):-560.697976Trading hours (GMT+2):Mon-Fri 09:01-22:59
Instrument:DAXMT4 Description:GERMANY30Min. Price Fluctuation:0.01Lot size:25Leverage:50:1Swap Long (in points):-191.6208Swap Short (in points):-289.1624Trading hours (GMT+2):Mon-Fri 03:15-22:59
Instrument:DOWMT4 Description:US30Min. Price Fluctuation:0.01Lot size:5Leverage:50:1Swap Long (in points):-555.413084Swap Short (in points):-396.1856Trading hours (GMT+2):Mon-Fri 01:00-24:00
Instrument:FTSEMT4 Description:UK100Min. Price Fluctuation:0.01Lot size:10Leverage:50:1Swap Long (in points):-398.649096Swap Short (in points):-398.4477Trading hours (GMT+2):Mon-Fri 03:01-22:59
Instrument:HANGMT4 Description:HK50Min. Price Fluctuation:0.01Lot size:50Leverage:50:1Swap Long (in points):-299.12454Swap Short (in points):-209.02206Trading hours (GMT+2):Mon – Fri 04:20-07:00, 08:35-11:15, 12:20-22:00
Instrument:IBEXMT4 Description:SPAIN35Min. Price Fluctuation:0.01Lot size:10Leverage:50:1Swap Long (in points):-90.31698Swap Short (in points):-124.58017Trading hours (GMT+2):Mon-Fri 10:01-20:59
Instrument:JSEMT4 Description:JSE40Min. Price Fluctuation:0.01Lot size:50Leverage:50:1Swap Long (in points):-682.08Swap Short (in points):-290.173Trading hours (GMT+2):Mon-Fri 08:35- 17:25
Instrument:NKMT4 Description:JAPAN225Min. Price Fluctuation:0.01Lot size:10Leverage:50:1Swap Long (in points):-193.62304Swap Short (in points):-195.8931Trading hours (GMT+2):Mon-Fri 01:01-23:15, 23:30-23:59
Instrument:NSDQMT4 Description:USTECHMin. Price Fluctuation:0.01Lot size:20Leverage:50:1Swap Long (in points):-197.5519 Swap Short (in points):-123.8493 Trading hours (GMT+2):Mon -Fri 01:00-24:00
Instrument:SPMT4 Description:US500Min. Price Fluctuation:0.01Lot size:50Leverage:50:1Swap Long (in points):-50.6931 Swap Short (in points):-32.4629 Trading hours (GMT+2):Mon-Fri 01:00-24:00
Instrument:SPMIBMT4 Description:ITALY40Min. Price Fluctuation:0.01Lot size:5Leverage:50:1Swap Long (in points):-2500.3835Swap Short (in points):-3800.9725Trading hours (GMT+2):Mon-Fri 10:01-21:29
Instrument:VIXMT4 Description:VIXMin. Price Fluctuation:0.01Lot size:1000Leverage:5:1Swap Long (in points):-10Swap Short (in points):-10Trading hours (GMT+2):Mon-Fri 10:30-22:59
Instrument:MSCISMT4 Description:MSCISMin. Price Fluctuation:0.01Lot size:200Leverage:50:1Swap Long (in points):-1.3889Swap Short (in points):-0.881Trading hours (GMT+2):Mon-Fri 03:31-12:20, 12:50-23:59
Instrument:Swiss Market Index 20MT4 Description:SMI20Min. Price Fluctuation:0.01Lot size:20Leverage:50:1Swap Long (in points):-84.9984Swap Short (in points):-50.8124Trading hours (GMT+2):Mon-Fri 09:01-22:59
Instrument:USNDXMT4 Description:USNDXMin. Price Fluctuation:0.001Lot size:1000Leverage:50:1Swap Long (in points):-100Swap Short (in points):-100Trading hours (GMT+2):Mon-Fri 01:05-23:59

What is indices trading?

A stock index tracks and quotes the price of a combination of stocks, where each stock’s value in the index is averaged out according to its market capitalization.

Highly valuable stocks typically represent enjoy more weight in the index valuation, however, changes in the value of a stock index are typically the result of price swings affecting the majority of the companies that make up the index itself.

Stock indices may consist of the best-performing stocks in a country or region, or may comprise the stocks of companies from a specific industry such as mining, technology or agriculture.

Popular stock indices include the Dow Jones and S&P 500 in the U.S as well as DAX and Nikkei in Europe and Asia Pacific respectively.

Indices trading advantages

  • Diversification and lower risk profile
  • Buy or sell capability
  • Higher profit potential with up to 100:1 leverage

What affects the value of indices?

As stated above, the value of an index depends on the average price of the stocks included in the index. When the overall price of the stocks that comprise the index goes up, so does the value of the index.

 

On the other hand, when the companies in the index aren’t faring well, the price of their stock will go down and subsequently so will the value of the index.

 

Therefore, traders who aim to succeed in trading indices need to monitor closely the companies that the index tracks and their performance on the world stage. Economic news and political events that may impact the overall economy of a country or region are equally important to index traders as indices have proven to be an accurate indicator of the economy as a whole.

MORE INFO:

Instrument– The FX currency pair or underlying asset of the CFD product to be traded.

Country– The country that the equity or bond is based in.

Standard Contract size– The lot size traded on each platform (Note: CMTrading in MT4 represents the standard lot size).

Standard Spread– The difference between the BID & the ASK price quote for each instrument under normal market conditions.

Margin Per Lot– The required margin to open a single lot of each instrument (Note: It is shown in notional terms).

Overnight Interest Sell/Buy– The overnight interest debited/credited in daily % terms for each instrument.

Trading Hours– The time that trading is available for the specified instrument.

Exchange– The exchange of the underlying asset.

Risk Warning:
Trading CFD’s on margin carries a high level of risk, and may not be suitable for all investors.

The Stock Indices Trading Conditions display the ‘Spread Over Market’ for Stock Index Instruments unless otherwise stated. The ‘Spread Over Market’ is the Mark-up CM TRADING adds to the Current Market Spread.

Spread Cost Formula: Spread x Trade Size = Spread Charge in Currency Instrument is denominated in.

Example 1

For a 1 index S&P500 Trade, with a Spread of 75 Pips ($0.75), the calculation is as follows:

0.75 X 1 = $0.75*

CM TRADING is compensated through the Bid-Ask spread, except when otherwise stated.

CM TRADING does not charge commissions on any trade.

All Instruments are traded on Margin allowing you to Leverage your positions. The Stock Indices Trading Conditions display Margin Amounts as a Percentage (%).

Percentage Margin Formula: Position Size x Current Price x Margin (%) = Margin Required*

* Margin Required is calculated in the Currency the Instrument is Denominated in.

Example

For a 1 Index S&P500 Trade, with a Market Price of $1400 and a Margin Requirement of 0.50%, the calculation is as follows:

Percentage Margin Requirement: 1 x 1, 400 x 0.005 = $7.00*

During Indices Roll Over week if a new position on the new contract is opened whilst holding an old contract, margin will be equal to holding 2 positions

The Stock Indices Trading Conditions display the Over-Night (O/N) Interest Rates Charged/Paid on a daily basis for holding a position open past the End of Day time. These are displayed in the “Overnight Interest – Buy” and “Overnight Interest – Sell” columns. End of Day is 22:00 GMT except during Daylight Savings when it changes to 21:00 GMT.

You can use the following formula to calculate your Daily Overnight Interest amount:

Swap calculation = No Of nights * Swap (buy or sell) *No of Lots*Point value

Example

For a 1 lot NASDAQ trade, with a Daily Swap Buy Rate of -97.55 and subject to charge for 1 day the calculation is as follows:

SWAP = 1x-97.55x1x0.2 = -19.51 USD

Notes

  • Point value = Contract size *No of Decimals in the Pair.

For NASDAQ , the price is denominated in 2 decimals. Point value = 20(contract size) * 0.01 (number of decimals) so the point value for is NASDAQ 0.2

For DAX  the price is denominated in 4 decimals.

Point value = 25 (contract size) * 0.01(number of decimals) so the point value for DAX is 0. 250

  • Overnight Interest Charged/Paid is calculated in the Currency the Instrument is Denominated in.

Note:

Positions that are held open over Wednesday night will incur a triple swap charge. This is to account for the settlement of trades over the weekend, where no swap rates are charged since the market is closed.

You can use the following formula to calculate your Volume:                    

Number of lots * Contract Size* Open Price                     

E.G. For GERMANY30                   

2 * 25 * 15086.54 = 754,327 EUR                            

If account is on USD then we convert 754,327 EUR to USD — 816,641 USD                          

E.G. For USTECH                             

2 * 20 * 11474.29 = 458,971 USD                           

Did you know?

Trading indices is highly popular among conservative investors who prefer lower-risk market opportunities because, due to the weight distribution of each stock in the index, volatility is greatly decreased.

 

Also, since indices are generally composed of large and well-performing companies, they tend to appreciate over time and are therefore highly stable and lucrative investment vehicles.

 

One of the most popular and widely traded indices across the global equity markets is the Dow Jones or Dow Jones Industrial Average Index (DJIA 30). While it used to consist of the mainly industrial stocks, today it tracks 30 of the best-performing companies in the U.S.