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Never has it been easier to trade around the clock and access the major global indices through the MetaTrader 4 trading platform. ACY gives you access to desktop, mobile and tablet versions of MT4 so you can trade on the go, using the world's most popular trading platform.
Most global indices remain open for trading outside the regular market hours. And the fact the various indices operate in different time zones means you can have trading opportunities almost 24 hours a day. Whether you want to trade the Asian indices during their day and catch the European or US indices later on, or vice versa, you have more opportunities when you are trading index CFDs.
Trading Index CFDs is done on margin, which means you only put a fraction of the trade size upfront to open an Index trade. You can trade the major indices at 20 to 1 leverage with minors at 10 to 1.
The fact you can trade indices short or long makes them an attractive proposition to many traders. And why not? This means you can take advantage of price movements whether the markets are going up or down. In this sense, you can use Index trading as a hedging strategy or for directional trading as well.
How to Trade Index CFDs
Let's take a look at an Index CFD trading example so you can see how leverage, margin and what happens when you close out for a profit or a loss.
1 Lot = 1 Contract | Position: Long | Leverage: 20:1
Open
Close
Close
Dow Jones (US30USD)
Bid 16,814.1/Ask 16,817.1
Proposed leverage is 20:1
Bid 16,824.1 / Ask 16,827.1
Closing Price @ $16,824.1
Bid 16,794.1 / Ask 16,797.1
Closing Price @ $16,794.1
Value per lot
1x16,817.1 = $16,817.1 USD
Value per lot
$16,824.1
Value per lot
$16,794.1
Margin per Lot
16,817.1/20 = $840.855 USD
P/L
16,824.1-16,817.1 = $7
P/L
Loss: 16,817.1-16,794.1 = $23
Open
Dow Jones (US30USD)
Bid 16,814.1/Ask 16,817.1
Proposed leverage is 20:1
Value per lot
1x16,817.1 = $16,817.1 USD
Margin per Lot
16,817.1/20 = $840.855 USD
Close
Bid 16,824.1 / Ask 16,827.1
Closing Price @ $16,824.1
Value per lot
$16,824.1
P/L
16,824.1-16,817.1 = $7
Close
Bid 16,794.1 / Ask 16,797.1
Closing Price @ $16,794.1
Value per lot
$16,794.1
P/L
Loss: 16,817.1-16,794.1 = $23
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