Trading Index CFDs
Index Contracts for Difference (CFDs) are a popular financial instrument used for trading the performance of an underlying stock market index. Some of the widely traded indices are the S&P 500, Dow Jones Industrial Average, and the NASDAQ 100 in the United States, while in Europe t FTSE 100, DAX 40, and CAC 40 are commonly traded.
A CFD is a contract between two parties, the buyer and the seller, that allows them to speculate on the price movements of an underlying asset, without actually owning the asset itself. When trading index CFDs, the buyer is essentially speculating on the price movement of a specific index, while the seller is betting against this price movement.
One of the main advantages of trading index CFDs is the ability to take both long and short positions. This means traders can profit from both rising and falling markets, and can use strategies such as hedging to reduce their risk exposure. CFDs also allow for leverage, which means traders can open larger positions with smaller amounts of capital, potentially magnifying their gains (and losses).
When trading index CFDs, traders must be aware of the costs involved. This includes the spread (the difference between the buy and sell price), overnight financing charges (if the position is held overnight), and any other fees charged by the broker. Traders should also consider the potential risks involved, such as the impact of unexpected news events on the underlying index, which can cause sudden price movements.
Before trading index CFDs, traders should conduct thorough research on the underlying index and market conditions, and develop a trading plan with clear entry and exit points. It is also important to practice risk management techniques, such as setting stop loss orders to limit potential losses.
Trading Index CFDs with INVAST Securities Co.,Ltd
Global markets at your fingertips
Trade popular markets like the FTSE 100, CAC 40, US 500 and ASX 200, all from one account
Access leverage up to 100:1
Use leverage to control a larger position size with a smaller initial investment
Trade long and short
With traditional share trading you can’t trade short, but with INVAST Securities Co.,Ltd Index CFDs, even bearish trends can be capitalised on
Ultra-fast execution speed
We work constantly to deliver fast execution speeds across our entire product range
24/5 dedicated client support
Each client is assigned a personal account manager. Indonesian and Chinese speakers can access account managers fluent in their language
Diversify your portfolio
INVAST Securities Co.,Ltd also provides a wide range of Forex Pairs, Shares and Commodities to trade as CFDs
Range of Indices to Trade
Cash Index CFDs
Below is the full list of the global Indices you get access to via our INVAST Securities Co.,Ltd Indices trading platform. Please note that all Indices offered are provided as a CFD.
| Instrument | ST5 Symbol | Contract Size | Margin | Currency | Min. Trade Size | Max. Trade Size |
|---|---|---|---|---|---|---|
| FTSE 100 | FTSE100 | £1 x symbol value | 1.00% | GBP | 0.1 | 250 |
| DAX 30 | DAX30 | €1 x symbol value | 1.00% | EUR | 0.1 | 250 |
| ESP 35 | ESP35 | €1 x symbol value | 2.00% | EUR | 0.1 | 250 |
| CAC 40 | CAC40 | €1 x symbol value | 2.00% | EUR | 0.1 | 250 |
| STOXX 50 | STOXX50 | €1 x symbol value | 1.00% | EUR | 0.1 | 250 |
| WS 30 | WS30 | $1 x symbol value | 1.00% | USD | 0.1 | 250 |
| US 500 | US500 | $10 x symbol value | 1.00% | USD | 0.1 | 50 |
| US 2000 | US2000 | $10 x symbol value | 1.00% | USD | 0.1 | 50 |
| NDX 100 | NDX100 | $1 x symbol value | 1.00% | USD | 0.1 | 250 |
| ASX 200 | ASX200 | $1 x symbol value | 1.00% | AUD | 0.1 | 250 |
| HK 50 | HK50 | HK$10 x symbol value | 4.00% | HKD | 0.1 | 100 |
| JP 225 | JP255 | ¥100 x symbol value | 1.00% | JPY | 0.1 | 100 |
Futures Index CFDs
INVAST Securities Co.,Ltd will automatically roll any open positions in Futures CFD contracts which will result in paying the spread (value of ASK – BID price) upon the roll. The rollover arises when the underlying instrument associated with a CFD is due for expiry and INVAST Securities Co.,Ltd begins to price the CFD from the next available futures contract. As the next dated futures contract trades at either a discount or a premium to the expiring futures contract, your trading account will be credited or debited the difference between the closing price of the expiring contract and the opening price of the new contract, depending on your net exposure of the rolled instrument. INVAST Securities Co.,Ltd will generally roll futures contracts within 72 business hours of the current contract expiry date in order to avoid low liquidity and larger spreads as the current futures contract approaches expiry.
| Instrument | ST5 Symbol | Contract Size | Margin | Currency | Min. Trade Size | Max. Trade Size | Example of Tick Value |
|---|---|---|---|---|---|---|---|
| China 50 | CHINA 50 | $1 x symbol value | 5% | USD | 0.1 | 50 | 10055>10056 |
| US Dollar | USDOLLAR | $1000 x symbol value | 1% | USD | 0.1 | 50 | 101.305>101.315 |
Tools to advance your trading
Autochartist
One of our clients’ favourite ST5 charting tools, automatically scanning markets to deliver price action alerts, analysis, forecasts and more.
Learn more
Trading Central
AI analytics and analyst expertise combine to offer unbiased trading ideas, validation of new opportunities and education.
Learn more