Trading Equity Indices online with easy-forex®

7 diciembre, 2015  —  By

 

  • Trading Equity Indices via Contracts for Difference (CFDs) on our Web Trading and MT4 platforms is as simple as trading currencies. easy-forex offers four different trading equity indices choices:
  • US 500 tracking the S&P 500 Index
  • US Tech tracking the NASDAQ 100 Index
  • UK 100 tracking the FTSE 100 Index
  • GER 30 tracking the DAX Index

Trading Equity Indices

An index is essentially a portfolio of shares. The only way that it can actually be traded is by buying all the shares in the portfolio in the same proportions, and rebalancing the portfolio whenever the index composition changes. It goes without saying that this is both a difficult and a costly task. For this reason, indices are usually traded as futures contracts, which are standardized contractual agreements to buy or sell a particular commodity or a financial instrument at a pre-specified price on a future date.

You can now trade equity indices in the form of CFDs straight from your easy-forex account. The pricing of all indices is based on the underlying spot futures contracts.

How to open a Day Trade on an index with our Web Trading platform

1. First, log into your account

2. Select the Indices tab above the central trading ticket

3. You will notice that the Rates Table on the left changes to Indices. You can customize your indices table in the same way you can customize your currency rates table

4. Select which Index you wish to buy or to sell

5. Select the contract size you would like to trade (note that the position size is defined as the number of contracts – the next section describes how to find the value of a contract)

6. Select your margin to risk from the drop down menu

7. Your Stop Loss is set automatically according to the margin you have chosen to risk. You can change this after you’ve opened your deal by clicking ‘modify’ in the My Position area

8. Click ‘Trade Now’ to open the deal, or if you would like to consider the opening rate first, click ‘Freeze Rate’ to lock it in for a few seconds and then click ‘Trade Now’

9. Note that there is no Renewal Fee for indices as they are Futures Contracts. The expiry date of the contract is shown in the trading ticket

Contract values and margin requirements

Index Smallest rate change (tick) Tick value Value of one contract change Contract rates (example) Value of 1 contract Minimum Margin per Contract
US 500 (SPI) 0.01 $0.50 100 ticks x $0.50 = $50 1421.88 $50 x rate of US 500 = $71,094 1250 USD
US Tech (NDQ) 0.01 $0.20 100 ticks x $0.20 = $20 2640.5 $20 x rate of US tech = $52,810 1250 USD
UK 100 (FTS) 0.1 £1.00 10 ticks x £1.00 = £10 5898.2 £10 x rate of FTSE 100 = £58,982 1000 GBP
GER 30 (DAX) 0.1 € 2.50 10 ticks x €2.50 = €25 7645.4 €25 x rate of DAX 30 = €191,135 1250 EUR

The smallest rate change (tick)

A tick can also be thought of as the number of decimals each index is quoted to:

US 500 (SPI) = 1421.88 (0.01)

US TECH (NDQ) = 2640.50 (0.01)

UK 100 (FTS) = 5898.2 (0.1)

GER 30 (DAX) = 7645.4 (0.1)

Index Minimum deal size Min. margin per min. deal size
US 500 (SPI) 0.02 25 USD
US Tech (NDQ) 0.02 25 USD
UK 100 (FTS) 0.02 20 GBP
GER 30 (DAX) 0.02 25 EUR

The Basics of S&P 500

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S&P 500 is one of the major US stock market indices, first published in1957. The index is composed of publicly owned companies that are traded in either the NYSE (New York Stock Exchange) or the NASDAQ. It is one of the most frequently cited share indices in the world, and is popular due to its ability to capture economic activity in the US. Mutual funds, exchange-traded funds and pension funds invest considerable amounts of capital in an effort to track the performance of this index.

Characteristics of the S&P 500

1. Capitalization-weighted index

2. Constituents of the index represent all the major industries in the US economy

3. Includes a few non-US companies

4. Is considered a leading indicator of US economic activity.

Trading S&P 500 via US 500 (SPI)

As explained, trading the index by replicating its exact share composition is a costly and a time consuming task. This is why easy-forex brings you the possibility of trading the S&P 500 index via our US 500 (SPI) CFD contracts. These futures contracts are quoted in US dollars and have lower margin requirements than the standard S&P 500 futures.

Specifications for trading US 500 (SPI) with easy-forex®

easy-forex Symbol for US 500: SPI

Expiration date: All US 500 (SPI) deals expire quarterly (just like the standard S&P 500 index), in March, June, September and December.

Trading hours: Trading starts on Sunday at 22:00/23:00 GMT (summer/winter) and ends on Friday at 20:15/21:15 GMT (summer/winter), with a daily break from 20:15/21:15 GMT (summer/winter) until 22:00/23:00 GMT (summer/winter). No opening or closing of deals is allowed outside the stated trading hours.

Availability: US 500 (SPI) trading is not available in the USA and some other regions. Check with your account service manager or personal dealer if it is available in your country.

The Basics of NASDAQ 100

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The NASDAQ 100 is a US based stock market index, composed of 100 of the largest non-financial companies listed on NASDAQ. It reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It began trading in 1985 and is considered to capture the performance of the technology sector in and out of the US.

Characteristics of NASDAQ 100

  • Capitalization-weighted index
  • Includes companies outside the US
  • Does not include financial firms, which differentiates it from the S&P 500
  • Is one of the most followed indices in the world

Trading in NASDAQ 100 via US Tech (NDQ)

As explained, trading the index by replicating its exact share composition is a costly and a time consuming task. This is why easy-forex brings you the possibility of trading the NASDAQ 100 index via our US Tech (NDQ) CFD contracts. These futures contracts are quoted in US dollars and have lower margin requirements than the standard NASDAQ 100 futures.

Specifications for trading US Tech (NDQ) with easy-forex®

easy-forex Symbol for US Tech: NDQ

Expiration date: All US Tech (NDQ) deals expire quarterly (just like the standard NASDAQ-100 index), in March, June, September and December.

Trading hours: Trading starts on Sunday at 22:00/23:00 GMT (summer/winter) and ends on Friday at 20:15/21:15 GMT (summer/winter) with a daily break from 20:15/21:15 GMT (summer/winter) until 22:00/23:00 GMT (summer/winter). No opening or closing of deals is allowed outside the stated trading hours.

Availability: US Tech (NDQ) trading is not available in the USA and some other regions. Check with your account service manager or personal dealer if it is available in your country.

The Basics of FTSE 100

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The FTSE 100 is a stock index comprised of the 100 most highly capitalized companies listed on the London Stock Exchange. It is the most monitored UK equity index and is considered a measure of UK’s business activity. The FTSE 100 was established in 1984.

Characteristics of FTSE 100

  • Capitalization-weighted index
  • Most followed UK equity index
  • Only includes UK based companies

Trading FTSE 100 via UK 100 (FTS)

As explained, trading the index by replicating its exact share composition is a costly and a time consuming task. This is why easy-forex brings you the possibility to trade the FTSE 100 index via our UK 100 (FTS) CFD contracts. These futures contracts are quoted in British pounds (GBP) and have lower margin requirements than the standard FTSE 100 futures.

Specifications for trading UK 100 (FTS) with easy-forex®

easy-forex Symbol for UK 100: FTS

Expiration date: All UK 100 (FTS) deals expire quarterly (just like the standard FTSE 100 index), in March, June, September and December.

Trading hours: Trading is conducted from 07:00/08:00 GMT (summer/winter) until 20:00/21:00 GMT (summer/winter) daily, Monday to Friday. Outside these hours, no opening or closing of deals is allowed.

Availability: UK 100 (FTS) trading is not available in the USA and some other regions. Check with your account service manager or personal dealer if it is available in your country.

The Basics of DAX 30

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The DAX 30 is comprised of 30 major German companies trading on the Frankfurt Stock Exchange (FSE). The index was established in 1987.

Characteristics of DAX 30

  • Most followed equity index in the Eurozone
  • Measures the performance of the 30 largest German companies in terms of order book volume and market capitalization

Trading DAX 30 via GER 30 (DAX)

As explained, trading the index by replicating its exact share composition is a costly and a time consuming task. This is why easy-forex® brings you the possibility to trade the DAX index via our GER 30 (DAX) CFD contracts. These futures contracts are quoted in euros (EUR) and have lower margin requirements than the standard DAX futures.

Specifications for trading GER 30 (DAX) with easy-forex®

easy-forex® Symbol for GER 30: DAX

Expiration date: All GER 30 (DAX) deals expire quarterly (just like the standard E-mini DAX index), in March, June, September and December.

Trading hours: Trading is conducted from 06:00/07:00 GMT (summer/winter) until 20:00/21:00 GMT (summer/winter) daily, Monday to Friday. Outside these hours no opening or closing of deals is allowed.

Availability: GER 30 (DAX) trading is not available in the USA and some other regions. Check with your account service manager or personal dealer if it is available in your country.

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