Index CFDs

Gain exposure to a range of instruments under one index, in one trade. The world’s most popular Indices are available on all IC Markets trading platforms.

Indices are the most popular form of CFDs. IC Markets has a large range of Indices from around the world to choose from, including the Australian S&P 200 Index, UK FTSE 100 Index, US E-mini S&P 500 and US DJIA Index.

A stock index is a good indicative measure of market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue chip stocks listed on the 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. Online CFD and futures based indices are offered on both IC Markets MetaTrader 4, 5, and cTrader Platforms.

Index CFDs

Facts

(Spot) Equity Indices Spreads

IC Markets offers competitive spreads across all of our cash Indices, including the E-mini S&P 500 Index from 0.5 points, the FTSE 100 Index from 1 point, Xetra DAX Index from 1 point and S&P 200 Index from 1 point.

Futures Indices

In addition to Equity Indices, IC Markets also offers Futures Indices: ICE Dollar Index and VIX Index.

How to determine if a client is entitled dividend from Index AUS200?

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 EUR€2.44 per lot. Alternatively, if the index is US500, the dividend adjustment would be EUR €2.44 per lot. IC Markets’ Ex-Dividends Excel shows the expected indices that will have their points adjusted for the given week.

The gross loss on your trade is calculated as follows:

Opening Price
4951
Closing Price
4932
Difference
-19
Gross Loss on Trade
-19.00 points x 2 contracts (€2 per point) = EUR €-38.00

Opening the Position

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.

Closing the Position

Four days later, the Australia 200 Index has fallen to 4932.00/4933.00 and you decide to get out of losing trade. You close your position by selling 2 contracts at 4932.00.

The gross profit on your trade is calculated as follows:

Opening Price
4951
Closing Price
4970
Difference
19
Gross Profit on Trade
19.00 points x 2 contracts (€2 per point) = EUR €38.00

Opening the Position

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.

Closing the Position

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.