Indices




Product Name Margin & PnL Currency Product Description Min/Max Trade Size MT4 Digits
AUS200 AUD based on the major stock indices of 200 large enterprises 1/250 2
EUSTX50 EUR Eurozone blue chip stock price index 1/250 2
FRA40 EUR Including 40 companies in the French stock market 1/1000 2
GER30 EUR Consisting of 30 companies traded on the Frankfurt Stock Exchange 1/1000 2
HK50 HKD Based on 50 top Hong Kong listed companies 1/1000 2
JPN225 JPY Based on 225 Japanese companies 1/25000 2
NAS100 USD Based on US technology companies 1/2000 2
SPA35 EUR Major Spanish stock exchange listed companies 1/250 2
SWI20 CHF Based on 20 top listed Swiss companies 1/250 2
UK100 GBP Listed on the London Stock Exchange , 100 high-value companies index 1/1000 2
UKOIL USD Brent crude 1/1000 3
US30 USD The US securities market index consisting of 30 companies 1/2000 2
US500 USD The US securities market index consisting of 500 leading companies 1/1000 2
US2000 USD Composed of small-cap stocks of listed US stock market index 1/250 2
USOIL USD West Texas Intermediate Oil 1/1000 3


About Equity Indices Trading


Equity indices, or stock indices are actual stock market indexes.This measure the value of a specific section of a stock market. They are calculated based on a weighted average of the prices of selected stocks, Stock indices are either based on a specific stock market such as NASDAQ, or based on a specific set of the largest companies of a nation such as the American S&P 500, the British FTSE 100, or the Japanese Nikkei 225. Stock indices show the general direction of a specific stock market or of the general economy of a country. 

The actual weight given to a stock index from the underlying basket of stocks varies between the indices. There are two main ways an index can calculate the weight a specific underlying stock is "price weighting” and "capitalization weighting”.  For example:

1. Dow Jones (US30) and Nikkei 225 (Japan225) are price weighted indices.

2. FTSE 100 (UK 100), ASX200 (Australia 200), Hang Seng Index (Hong Kong 50, DAX (Germany 30), CAC 40 (France 40) and IBEX35 (Spain 35) are capitalization weighted indices.

2. FTSE 100 (UK 100), ASX200 (Australia 200), Hang Seng Index (Hong Kong 50, DAX (Germany 30), CAC 40 (France 40) and IBEX35 (Spain 35) are some of the main stock indices which are capitalization weighted.

We offer index trading using derivatives.  Value is determined by fluctuations in the value of the underlying indices listed above, such as the NASDAQ-100 (NAS100). Prices for index trades are only quoted and can only be traded during the open market hours of the relevant exchange. 

Prices for index trades are only quoted and can only be traded during the open market hours of the relevant exchange. 

Trading Examples

You expect the value of GER30 Index to increase so you enter into a long position of 1 lot in the underlying index of GER30. The ASK price of GER30 was quoted as 12,702.40 in euro. When the price increases to 12,769.80, the spot exchange rate of EUR/USD is 1.12719. Then the total profit can be calculated as (12,769.80-12,702.40) x1.12719=75.97USD. If the price decreases to 12,655.00 with spot exchange rate unchanged, you make a loss equal to (12,655.00-12,702.40) x1.12719=53.43USD.

You expect the value of GER30 Index to increase so you enter into a long position of 1 lot in the underlying index of GER30. The ASK price of GER30 was quoted as 12,702.40 in euro. When the price increases to 12,769.80, the spot exchange rate of EUR/USD is 1.12719. Then the total profit can be calculated as (12,769.80-12,702.40) x1.12719=75.97USD. If the price decreases to 12,655.00 with spot exchange rate unchanged, you make a loss equal to (12,655.00-12,702.40) x1.12719=53.43USD.

Equity Indices – Who is Who?


We provide a great trading experience through derivatives based on the following indices and other indices).  

S&P 500 (US500): The S&P500 (US500) stock market index was introduced by the American financial services company Standard & Poor’s in 1957. The S&P500 is a leading indicator of US equities, and as one of the most frequently used benchmarks for the US stock market on the whole.  It covers about 75% of the American equity market by capitalization.

ASX200 (Australia200): The ASX 200 (AUS200) index is a market index of stocks listed on the Australian Securities Exchange, which is one the world’s top exchanges. It is a market-capitalization weighted index.

Nikkei 225 (JP225): The Nikkei 225 (JP225), the "Nikkei”, is a stock index of the Tokyo Stock Exchange, the world’s third largest stock exchange.

HSI (HK50): The HIS (HK50), the Hang Seng Index, is a market capitalization-weighted index that has been used since 1969 to record the daily changes of the 50 largest companies on Asia’s second (and the world’s sixth) largest stock exchange, the Hong Kong Stock Market (HKEx).

FTSE 100 (UK100): The FTSE 100 (UK100) is the Financial Times Stock Exchange 100 Index, and is based on the 100 companies with the highest market capitalization listed on the London Stock Exchange.

NASDAQ 100 (US100): The NASDAQ 100 (US100) consists of around 100 equity securities issued by the most significant non-financial companies listed on the NASDAQ Stock Exchange.

DJIA (US30): The Dow Jones Industrial Average, the DJIA (US30), is the second oldest stock market index in the United States, shows the performance of 30 major American companies during a standard trading session in the stock market. It is calculated by dividing the total sum of all prices of all 30 stocks that it represents by a divisor that takes into account stock splits, spinoffs and other changes.

DAX (GER30): DAX (GER30), the Deutscher Aktienindex, is the principal German stock market index and represents 30 major companies that trade on the Frankfurt Stock Exchange. 

CAC 40 (FRA40): The French benchmark stock market index CAC 40 (FRA40), the Cotation Assistée en Continu, represents the top 40 values of the 100 highest market-capitalization company stocks traded on the French securities market Euronext Paris, the second largest exchange in Europe.
Further Information
Some key  points to understand when trading equity indices:

1. All the stocks in an equity index (e.g. Dow Jones) are subject to a selection process and might be substituted by another company if their overall trading performance drops relative to other companies. That means the companies that belong to an index are not guaranteed to be always the same.

2. The effect of a specific stock on the overall stock index is based on calculations and rules. So the overall price of a stock index is not a simple addition of the prices of the stocks divided by the number of stocks.

3. A stock index can be considered a benchmark of historical performance of the overall stock market (but it does not predict future value).

4. In general more weight is given to the index from companies with larger capitalization. This means that if the stock of a specific large company falls for any reason, the overall index will follow it even though the rest of the stocks in the basket might not be falling. 

5. A The underlying stocks that make up the basket , which is called an index, change over time. Over time the index itself does not always represent the same basket of stocks.

Q&A


Equity indices, or stock indices, are in simple language indexes that represent the overall price of a basket of underlying stocks.

The major equity indices (stock indices of the world) include, but are not limited to, the following:

        1. S&P 500
        2. Dow Jones 
3. Nasdaq 
        4. FTSE100
5. Nikkei225
        6. DAX
        7. CAC40
        8. Euro Stoxx 50
        9. ASX200

Stock indices are in most cases a representation of the overall picture of the stock market, which their basket belongs to. In most cases, the underlying stocks that belong to a stock index consist of the most influential (largest capitalization) companies.

During any trading day, stock prices of specific companies will go up or down. Since a stock index is a compilation of a basket of underlying stocks, its actual price will move up or down based on the overall dynamics (mathematical and statistical formula) of which each stock price contributes to its final price.

The following are useful points to understand when trading equity indices:

1. All the stocks in a specific equity index (e.g. Dow Jones) are subject to a selection process and might be substituted by another company if their overall trading performance is overcome from a newcomer. In other words, the companies that belong to a basket are not guaranteed to be always the same.

2. The determination of the influence of a specific stock to the overall stock index includes calculations and rules. Not all stocks that add up to the basket are treated as equal. In simple words, the overall price of stock index is not a simple addition of the prices of the stocks and a division by the number of stocks.

3. A stock index shows the general consensus and can be considered a benchmark of performance of the overall stock market with historical value.

4. As mentioned in point 2, since not all stocks that belong to the basket are treated as equal, more weight is given to the index from companies with larger capitalization. This means that if the stock of a specific large company falls for any reason, the overall index will follow it even though the rest of the stocks in the basket might not be falling.

5. As mentioned in point 1, the underlying stocks that belong to the basket, which is called an index, change over time. Over a historical period, the index itself does not always represent the same basket of stocks.

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