Stockhome Indices Trading
What are Indices?
A financial index is composed of public companies traded on a particular stock exchange, or drawn from a particular field. The index calculates the collective market performance of all its component companies and publishes the figures. Indices are seen as accurate barometers of market sentiment as well as the strength of an economy. It is possible to open CFD trades on the market performance of several indices, investing in the points change in their values.
There are many prominent indices, as well as less familiar ones from emerging markets available at Stockhome. Some of the biggest indices include the FTSE 100, S&P 500, NASDQ-100 and DAX. When traded as CFDs, indices generally perform in a similar way to stocks.
The basic principles of indices trading
Indices trading is like any other form of transaction.
The goal is to buy Indices at a low price and sell them at a high price.
You buy 10 x DAX 30 units at $12,162.47 per unit (using our leverage). After 1 week you assume the price of the asset to increase and you sell your DAX 30 units and earn a profit of $230.7.
How did you do it?
- A week after you opened your position, DAX 30 was quoted at $12,185.54 (Bid price) to 12,187.99 (Ask price). You bought 10 units and paid $121,624.7.
- You sold the 10 units and got $121,855.4.
- You earned $230.7.
If you correctly predicted the market performance of the asset, you may make substantial profits, particularly if your trade is leveraged. If your investment does not succeed, you may lose part or all of your invested capital. You will never be subjected to any further debts or liabilities.
Enjoy Low-Cost Investing on Major Global Indices
Stockhome offers all traders low-cost commission free investing. There are no hidden fees or service charges. Instead, we offer highly competitive fixed spreads on the world’s major indices. The investment process is completely transparent and allows hands on account management.
Diversify your Trading Portfolio with Indices
Indices generally perform in a similar way to stocks but are (arguably) less vulnerable to sudden declines than individual companies. When you trade indices at Stockhome you don’t actually buy the index. You are investing on its future performance and aiming to profit from changes to its points value.
Below are Stockhome most popular indices:
DOWNJONES – DAX – NASDAQ - S&P 500
Open Leveraged CFD Trades on Indices
Stockhome traders can use up to x300 leverage to boost their initial investments and gain a high level of market exposure. Leverage enables you to aim for significant profits while utilizing modest investment capital.
Advantages of Trading Indices at Stockhome
CFDs have made it possible for traders to invest on the performance of indices and they are becoming a very popular form of investment. The value of indices closely reflects wider market trends, making them handy for new traders.
The Stockhome Market Report keeps you up to date with the performance of major indices and our live charts allow you to analyze their performance, both in real time and as past data.
Who Can Trade Indices?
Online Indices trading is already a highly popular form of investment with millions of traders worldwide. Almost anybody can trade Indices if they are willing to apply the basic principles of risk management.
Many of Stockhome top investors signed up as absolute beginners with no experience of the financial markets. They used the Education Center and free Demo Account to master the basics of Indices trading. Indices traders range from novice investors who trade part time, to expert investors who manage complex personal portfolios on a full-time basis. The Stockhome platform gives you the freedom to set your own financial goals and manage your own investments.