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Advantages of Trading Index CFDs

What is an Index CFD?

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

Why Trade with ACY Securities

ACY Securities is an innovative, tech-inspired multi-asset broker based in ACY Tower in Sydney, with our Australian entity regulated by the Australian Securities and Investment Commission (ASIC). Our institutional-grade trading conditions, combined with our award-winning services, allow you to take a position with confidence.

Regulated Broker

Headquartered In Sydney

Ultra-Low-Cost Trading

Spreads from 0.0 pips

Ultra-Fast Execution

Under 30ms*

Multi-Asset CFD Provider

Stocks | FX | Commodities | Indices | ETFs

Tools of The Trade

Daily reports | Trade ideas | Education

Deep Interbank Liquidity

From 16 tier one global banks

0.0 Pips

spreads from

1:500

Leverage

Under 30ms*

ultra-fast execution

2,200+

Tradeable Instruments

Regulated

Headquartered In Sydney