You will need a good platform for indices CFD trading. Short-term positions often require careful technical analysis with the use of sophisticated and powerful charting tools.
Here are two platforms for trading indices online.
MetaTrader 4 offers customisable charts, an exhaustive menu of indicators, and the systems necessary to engage in manual or algorithmic trading. You also have the ability to back-test strategies and access your account via desktop computer, laptop, mobile device, or tablet.
IRESS is another platform for trading indices online. Its setup is similar to the systems that institutional traders use. It relies on browser-based software, meaning you can access it from any computer. IRESS is ideal for traders who want detailed data at their fingertips because it has a modular layout, allowing you to select specific charts or data sets for your trading screen.
Frequently Ask Question
Stocks represent shares in an individual company. The price of the shares moves solely based on the company's performance, finances, and outlook. Meanwhile, indices track a group of companies that represent an industry or a nation's economy.
If you trade share CFDs, your analysis will focus on financial data and charts for one company. However, with indices CFD trading, you will look at the economy and the stock market as a whole.
If you trade share CFDs, your analysis will focus on financial data and charts for one company. However, with indices CFD trading, you will look at the economy and the stock market as a whole.
An index gives you exposure to an entire market sector. If you wanted to profit from a booming US economy, you could
purchase CFDs tracking the S&P 500, for example.
Also, you can use leverage to increase the size of your position without having to contribute more capital. The capital requirements for indices CFD trading are much lower than those for trading index ETFs or futures.
CFDs also track the underlying index. Other derivatives, such as options on index ETFs or futures, do not mirror the price movements as closely due to expiration and time decay, market expectations, and other factors.
Also, you can use leverage to increase the size of your position without having to contribute more capital. The capital requirements for indices CFD trading are much lower than those for trading index ETFs or futures.
CFDs also track the underlying index. Other derivatives, such as options on index ETFs or futures, do not mirror the price movements as closely due to expiration and time decay, market expectations, and other factors.
Since an index consists of different company stocks, the performance of influential companies, industries, or sectors can impact the price of indices CFDs. However, other factors are also important.
- Geopolitics can either inspire confidence in the markets or cause uncertainty. Treaty announcements, conflicts, international disagreements, and political changes can cause bear or bull markets depending on whether investors see the changes as positive or negative.
- Interest rate changes and other monetary policy decisions, which usually come from a central bank, can cause a country's stock market index prices to fluctuate.
- Government policies, such as trade deals and corporate tax rate changes, can affect stock market index performance. Generally, more pro-business decisions, such as lower tax rates or incentives for certain industries, cause index prices to rise. Meanwhile, tax increases, new regulations, and other factors slowing business processes can cause a drop in index value.
TMGM's indices CFDs use the spot price, which directly tracks the underlying indices, not the futures price. Spot prices are meant for immediate settlement.