Here you can find answers to the most frequently asked questions about online stock index trading with CFDs. Can't find what you're looking for? Please refer to the stock indices Contract Details.
What are stock indices?
A stock index is a statistical indicator measuring the combined value of underlying stocks within a section of the stock market.
There are different types of stock indices, including global, national and sector-specific indices. They move higher or lower based on investor reactions to a number of factors, such as a company reporting updates or economic announcements. A change in the value of any individual stock in an index will be reflected in a change of the overall value of that index.
We offer a huge range of tradeable stock indices CFDs, including the Singapore Blue Chip, Australia 200, Hong Kong HS42, Wall Street and many more.
Who trades CFDs on stock indices?
Depending on their individual goals, CFD traders trade stock indices in different ways. Those seeking fast returns can use short-term CFD strategies, placing positions on the current direction of the market. Others with a longer-term view can place a CFD trade on the value of the index at a point in the future, often a few months ahead.
CFD trading on indices provides exposure to a diversified range of stocks rather than picking individual stocks, thereby providing broader market exposure. An index will never go bust or be subject to a takeover bid, plus your potential risks and rewards are not tied to just one company’s fortunes.
It’s important when CFD trading on stock indices to keep abreast with the latest market news and economic updates. IG Markets offers a comprehensive package of Market Analysis resources, including our exclusive and free Morning Briefing, analytical tools, key calendar dates and technical analysis.
How do Stock Index CFDs work?
Once you know which stock index you would like to trade as a CFD, you simply check our current price and either ‘buy’ at the offer price, or ‘sell’ at the bid price.
IG Markets also offers you the unique opportunity to trade some of the world’s major indices in Singapore dollars. SGD-denominated CFDs are available on a range of global indices, including Wall Street, Hong Kong HS42, the FTSE 100, and Japan 225. Our SGD-denominated index contracts eliminate the currency risk that can arise with traditional index trading.
To develop a better understanding of how stock indices trading works, take a look at our example.
What are the advantages of CFD trading on stock indices?
- Tight spreads, from as little as 0.2 points* on the Singapore Blue Chip, during market hours
- Our award-winning PureDeal platform combines stability with instant execution
- 24-hour trading across a variety of major indices
- A range of Order types that enable you to manage risk and protect profits
Learn more about stock indices with our dedicated Stock Indices seminar.
* 0.05 points each side of the market spread.