Indices trading allows the trader to wager on the performance of a portfolio of stocks, providing a worldwide perception of market direction without needing to examine individual stocks.
An indices trading platform like IST Markets allows the trader to have a wide variety of global indices at his disposal so that he may implement various trading indices strategies in an efficient way.
To beginners in this kind of trading, learning “what is indices trading” involves learning that it is a method of exposing oneself to whole sectors or economies using a single financial instrument.
IST Markets offers competitive spreads across all cash indices, and so it is a favorite among traders seeking cheap trading. For example:
Trading equity indices involves dealing with financial instruments that represent the performance of a specific group of stocks, usually from a specific nation or sector.
These indices are good indicators of market sentiment and economic well-being. IST Markets offers a range of equity indices, including:
In addition to spot indices, IST Markets also provides futures indices trading, such as the ICE Dollar Index and VIX Index. Futures indices are exchange-traded contracts that require the buyer to buy, or the seller to sell, a given index at a future specific date and price. Traders use these instruments to hedge against positions or bet on future market direction.
Trading on indices has various benefits, such as:
Traders acquire exposure to many companies by making an investment in an index and therefore reduce the impact of performance by any one company on the investment.
Indices provide a perfect representation of the direction of markets and sentiment and enable making profitable trading decisions.
IST Markets provides leverage of 1:200 on indices trading, allowing traders to utilize their positions. Coupled with the tight spreads and high leverage, this amplifies trading possibilities for new as well as veteran traders.
Open a live trading account with IST Markets.
Upload your documents for confirmation.
Deposit money into your trading account.
Get access to a range of indices and start trading.
With IST Markets, an experienced broker to trade indices, the trader is exposed to a solid lineup of indices, good trading terms, and advanced platforms.
Stock indices trading or futures indices trading are the options available, and IST Markets has the instruments and facilities that will guide the way through these markets.
With IST Markets, clients choose a platform committed to openness, security, and customer satisfaction in the thrilling world of trading indices.
4951
4970
19
19.00 points x 2 contracts ($2 per point) = AUD $38.00
The price of the Australia 200 Index is 4950.00/4951.00. You are of the view that blue-chip stocks are undervalued so you decide to buy 2 contracts at 4951.00. (One contract is equal to $1 per index point). No commission is charged on Indices.
For every point that the bid quote on the Australia 200 Index rises above 4951.00 you will make a profit of $2 AUD, for every point the bid quote falls below 4951.00 you will lose $2 AUD.
Four days later, the Australia 200 Index has risen to 4970.00/4971.00 and you decide to take your profit. You close your position by selling 2 contracts at 4970.00.
From the above example, let us assume that the ex-dividend date for Index AUS200 is on the of 18th August 2016. Therefore, a client must have an open position for Index AUS200 before the 18th of August 2016 and it must remain open until the 18th August 2016, in order to have the dividend adjustment of $2.44 per lot. To determine if the dividend adjustment is added or deducted to the client’s account, will depend on whether it is a SELL or BUY on AUS200. If the client has 1 lot of BUY for AUS200, the client will be entitled $2.44 per lot. However, if it is a SELL of AUS200, the client will be deducted $2.44 per lot. The amount $2.44 per lot will be converted to the client’s base currency, before it is being deducted.
Since this is from index AUS200, the dividend adjustment will be AUD$2.44 per lot. Alternatively, if the index is US500, the dividend adjustment would be USD$2.44 per lot. IST Markets EX- Dividends Excel sheet shows the expected Indices that will have their index points adjusted for the given week and the actual ex-dividend adjustment amount for each indices will be updated regularly on our blog, Ex- Dividends Adjustments.
Indices trading involves speculating on the price movements of stock market indices, such as the S&P 500 or FTSE 100, without owning the underlying assets.
IST Markets offers a range of global indices, including major ones like the S&P 500, NASDAQ, FTSE 100, and more.
Yes, IST Markets provides leverage options for indices trading, allowing you to control larger positions with a smaller capital outlay.
Trading hours vary depending on the specific index. Please consult our trading platform for detailed schedules.
Utilize tools like stop-loss orders and position sizing strategies to manage potential losses in indices trading.
Indices trading can be complex and carries significant risk. It's advisable for beginners to educate themselves thoroughly or consult financial advisors before engaging in indices trading.
