Trade CFDs with CPT Markets UK
Indices are the most popular form of CFDs. CPT Markets UK has a large range of Indices from around the world to choose from, including the DOW30 Index, S&P500 Index, NASDAQ100 Index，FTSE100 Index，DAX30 Index，CAC40 Index and EUSTX50 Index.
A stock index is a good indicative measure of market performance. Indices such as the FTSE 100 Index are baskets of blue chip stocks listed on the London Stock Exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index.
Indices have the advantage of allowing traders to take a wider view of a basket of stocks rather than taking a view on one individual stock alone.
How to trade Indices
An index is made up of a group of shares and is used to track the performance of a country’s economy, a market sector or an exchange. The most traded indices include the Dow Jones Industrial Average, S&P 500, FTSE, DAX, ASX200, NASDAQ, CAC, EuroStoxx and Nikkei 225.
Indices trading is the most popular form of CFD trading.
A stock index is a hugely important part of our financial world, but it is nothing more than a number representing the top shares from a particular exchange. Since indices are just a number, they can’t be traded directly. You need a financial instrument, like CFDs to facilitate your trade. These numbers are calculated using a capitalisation-weighted average, which means the size of each company is taken into account. The more a particular company is worth, the more its share price will affect the index as a whole. If, on average, the share price of these companies goes up – then the index will rise with them. And if they fall, it will drop.
The amount of money made or lost on a trade depends on the market move and the size of your position.