What are Indices in Trading with CFD?

At large, CFD, Contract for Differences, is a contract between a seller and a buyer. It consists of a condition that the seller or the buyer would pay the price difference between the present value of an asset and the future value of the asset.

Why Indices in Trading with CFD?

From Nifty to Nasdaq, gain exposure to highly traded local & global indices with a broker that knows what matters to you.

What are indices?

‘Indices’ is a plural form of Index. Index is used to measure the value of a particular section of a market. That section usually contains the leading companies of the market. Examples of Index are S&P 500, NSE Nifty, Dow Jones Industrial Average, BSE Sensex, FTSE 100, Nikkei 225, CAC 40, and DAX.

In Indices or Index CFD Trading, you don’t need to actually buy or sell an Index. Just choose whether the value of an Index will rise or fall.

Two ways/positions of Trading Index CFD:

• Long: If you choose that an Index value will increase, you are in Index CFD Long position.
• Short: If you choose that an Index value will decrease, you are in Index CFD Short position.

How is money made through Indices CFD Trading?

In Indices CFD, you can gain through correctly speculating on the price movements of an Index. You don’t have the risk of owning the Index, as you are only guessing the price movement. The prime focus is only on the price change during the trade exit and entry of that particular Index.

For those who choose Long position in Index CFD trading:

• Note down the current value when you get into the contract. (Value Point 1)
• Observe the market.
• If the value of that Index goes up, note down that value. (Value Point 2)
• Close your CFD contract.
• Withdraw the difference between Value Point 1 and 2
• That difference is your profit.

For those who choose Short position in Index CFD trading:

• Note down the current value when you get into the contract. (Value Point 1)
• Observe the market.
• If the value of that Index decreases, note down that value. (Value Point 2)
• Close your Index CFD.
• Withdraw the difference between Value Point 1 and 2
• That difference is your profit.

If your speculation is wrong and the market goes in the opposite side, you incur loss. Even then, you can mitigate the loss by closing the contract as and when it is required.

Key Advantages of Indices CFD Trading:

• Huge exposure to established markets worldwide
• Get an option to choose both positions: short and long
• Trade either when the market is crashing or booming
• Benefit from the market at any given point of time
• Transparency in transactions

Why makes MintCFD the best site for Indices Trading with CFD?

• Zero Brokerage fees
• Choose from a wide variety of Indices across the world  
• 100x Leverage: 100x of your deposit amount can be used for trading. With smaller capital, trade larger units.
• Simpler to understand
• Safer to execute
• Access to major share indices
• Indices calculator is available

You can start Index CFD Trading, by opening your free account in just 4 minutes. You are just one step away from joining the best platform for Indices Trading.