Indicators

What are the indications?

Stock indices give you the opportunity to trade based on your opinions about a particular economy without the need to pick individual stocks. CFDs are one of the most well-known and popular trading products.

 

Market Index: A selection of stocks

Historically, investors have needed a way to analyze the overall performance of the market. After all, you cannot express a specific opinion about the US economy, for example, just by looking at the stock of one company, such as Apple. This need led to the emergence of the stock index, which usually includes a group of strong performing stocks that are grouped into a single basket according to their relative weight to give a quick snapshot of the state of the market as a whole.

The index is a good way to study specific markets, and it also gives investors a way to measure the performance of their individual portfolios, and accordingly adjust some investments that do not achieve the desired results to become more in line with the general trend in the market.

Indicators involve a variety of variables. For starters, the number of stocks included in a given index can vary widely, ranging from just a few companies in some indices all the way up to thousands of companies.

The price of the index is derived by weighting the relative weight of its constituent stocks. For price-weighted indices, the average price of the index is determined by a relative weighting of the price of each of the constituent stocks. For indices weighted by market capitalization, the price of the index is adjusted according to the size of the companies listed in it. There are other factors that are taken into account when calculating the value of the indicator, which differ from case to case

At the present time, there are thousands of stock indices worldwide, which represent companies that are traded at the local, regional or international level, and even at the level of each specific industry or sector separately.

 

Stock Indices CFDs: Trade on margin

Unlike in the forex market, buying or selling operations when trading an index are based on your opinions and expectations of the performance of that index. You only pay the spread to open deals with trustpointwealth. Most of our products do not have stop restrictions – so you can easily use scalping strategies on major indices. In addition, smaller lot sizes allow you to reduce your exposure to the market

 

How do Index CFDs work?

Investing in stocks has a wide appeal in the world, but the main obstacle remains the high value of the investment required to enter the market. Suppose you want to invest in a particular economy through one of the indicators, which in this case will represent a mirror that reflects the picture of the overall performance of this economy. You can simply buy the shares of all the companies included in this index, but this will require expensive investments, especially if we add to it the fees charged by the brokerage company for completing the deals.

Some may turn to the futures market, which allows index trading using exchange-traded funds (ETFs). The ETF owns stakes in all of the stocks that make up the index, but trading on these funds usually requires 100% margin, which means you need to pay the full value of the shares in order to invest in the index.

It is different with the indices products offered by trustpointwealth as they are traded as Contracts for Difference (CFDs). CFDs provide the advantage of margin trading, where you can pay part of the required capital and at the same time get the full value of the deal. But this is not the only advantage. Trading indices as CFDs removes all barriers to trading these products. When you trade in the futures markets, settlement periods for these contracts will apply. Short selling trades are almost impossible without a large account balance. This is not to mention paying large fees for each transaction.

On the other hand, settlement periods do not apply to index CFDs, shorting can be done easily, and you will only pay the spread. CFDs also allow you to use scalping strategies more easily, as well as reduce risk and provide the ability to enter the market with lower capital requirements on your account. We would like to point out that margin trading involves risks, as individual clients may lose all their deposited funds, while professional clients may lose more than their invested capital. Before you start trading, you should ensure that you fully understand the risks involved.

 

Trade according to your views on the global stock markets

Do you want an ideal environment to trade the US, European, Asian and Australian stock markets? We provide Index CFDs with enhanced execution services, which is one of our unique offerings in the industry and provides a great advantage for scalping, news and expert advisors traders.

 

 

Why trade indices with trustpointwealth?

No minimum stop order distance

FinanacesMater’s enhanced CFD execution model gives you the ability to trade with no minimum stop order distance on most products, including the AUS200, GER30 and US30. We welcome the use of most trading strategies

Lower transaction costs

Trade without commissions or stock exchange fees – transaction costs are limited to the spread.

Margin trading

A small portion of the total transaction value is set aside when trading global indices. 

Deal Sizes – Mini CFDs

Mini lot sizes give you the flexibility to reduce the risk on each trade. The indicator products offered by trustpointwealth also make it easier to trade in bear markets compared to stock markets. Do you think the market will go down? So you can sell this market as easily as you can buy bull markets.

 

CFD indices symbols

Trading CFDs or spread betting on stock indices with trustpointwealth is similar to trading forex. All you need to know is the ticker symbol and the lot size. See our Indicator Product Guide Indices CFDs are financial derivatives that allow you wide exposure to many markets, but it should be noted that trading indices CFDs on margin may not only multiply your profits, but may also significantly increase your losses.

Indices for CFDs can be an important addition to your trading strategy as they allow you to speculate on the price fluctuations of the underlying assets. You can view the list of CFD indices symbols to get a sense of the products available.

sympol

basic indicator

currency

average spread

    

AUS200

ASX SPI 200 Future

AU$

3.02

CHN50

SGX FTSE China A50 Future

US$

11.00

ESP35

IBEX35 Index Future

8.00

EUSTX50

Euro Stoxx 50 Future

2.13

FRA40

CAC40 Index Future

1.03

GER301

DAX Index Future

2.30

HKG33

Hang Seng Future

HK$

9.00

JPN225

Nikkei 225 Yen Future

¥

10.40

NAS100

E-Mini Nasdaq 100 Future

US$

1.73

SPX500

E-Mini S&P 500 Future

US$

0.57

UK100

FTSE 100 Index Future

£

2.10

US2000

E-Mini Russell 2000 Future

US$

0.40

US30

E-Mini Dow Future

US$

3.61

VOLX2

Mini VIX Future

US$

0.06

 

 

Risk disclosure

1.Average spreads of US30, NAS100, GER30, SPX500, UK100 and AUS200 shown are for peak hours only (7:00 am to 9:00 pm GMT). As of February 11, 2019, trading on the GER30 will remain open during peak hours (12:30 to 7:00 AM GMT). Spreads may widen off-peak hours, for more information on GER30 trading hours and spreads

2.VOLX – Unlike other indices, the VOLX is not a cash index, but is directly dependent on the underlying futures contract product, thus index contracts expire periodically. Please review our CFD Expiry Guide for upcoming expiry dates. CFD Expiry

Indices trading details

The markets move fast around the clock, which is why you should check the trading platform for the latest market developments. Additionally, you can read the product guide for indications for the most up-to-date details.

Mini contract sizes

The minimum lot size for trustpointwealth indices CFDs is 1 lot, which means you can trade the index with an amount starting from $0.10 to reduce your exposure risk.

Trading hours

Indices trading hours are generally based on the underlying asset’s stock exchange hours. Learn more

 

Finance fees

Rollover charges apply to any open positions held after the market closes at the end of the trading day (5pm EST).

margin requirements

Margin requirements change periodically as they depend on the level of expected volatility in the market. The trading platform displays the latest up-to-date margin requirements. Learn more

Improved implementation

You can benefit from enhanced execution services when trading with F, with no usual limit and stop restrictions on major indices.

Index pricing

You only pay the cost of the spread when trading indices on all trustpointwealth account types. Enhanced execution technology gives you the opportunity to take advantage of lower spreads on indices and no restrictions on limit and stop orders. See our Indicator Product Guide

Average spread on the symbol

sympol

spread

sympol

spread

    

US30

3.61

FRA40

1.03

SPX500

0.57

HKG33

9.00

NAS100

1.73

JPN225

10.40

UK100

2.10

AUS200

3.02

GER303

2.30

ESP35

8.00

CHN50

11.00

 

 

Risk disclosure

Average US30, NAS100, GER30, SPX500, UK100 and AUS200 average spreads shown are for peak hours only (7:00 am to 9:00 pm GMT). As of February 11, 2019, trading on the GER30 will remain open during peak hours (12:30 to 7:00 AM GMT). Spreads may widen outside of peak hours, for more information on GER30 trading hours and spreads, please visit the trustpointwealth Help page.

Decimal pricing

We offer quotes with more decimal places, which gives you the opportunity to benefit from lower spreads and more transparent pricing. For example

Our prices

9,790.05 on GER30

other companies’ prices

9,790.10 on GER30

Spread costs

When trading with FI, the spread is calculated automatically in the trading platform, so you can see the pip value and spread prices in real time while trading.

To calculate trading costs in your account currency: Spread x pip cost x number of lots = total transaction cost

Indicator symbol information

US2000 

The underlying asset of the US2000 is the E-Mini Russell 2000 Future The Russel 2000 index measures the performance of 2000 small companies included in the Russel 3000 index and is the most widely used index for tracking the performance of small-cap stocks in the United States

US30

The underlying asset of the US30 is the DJIA (Dow Jones) MINI e-CBOT. The Dow Jones index consists of the shares of 30 major American companies: AMEX, Boeing, Chevron, Coca-Cola, DuPont, GE, Goldman Sachs, Intel, IBM, Microsoft, Nike and many others.

SPX500

The underlying asset of the SPX500 is the broader S&P 500 stock market index, which is managed by S&P Dow Jones Indices, and consists of 500 major US companies covering about 75% of the US stock market by market capitalization, such as Delta, eBay, Halliburton and Yum! Brands. The S&P 500 was developed and is still managed by S&P Dow Jones Indices, a joint venture company majority owned by McGraw Hill Financial that publishes many other stock market indices such as the S&P Midcap 400, S&P Small Cap 600 and S&P Composite 1500.

NAS100

The underlying asset of the NAS100 is the NASDAQ100 stock market index. This index includes 100 companies spread over a wide range of industries, with the exception of entities operating in the financial sector such as banks and investment companies. Examples of companies included in this index include Apple, Adobe Systems, Amazon, Cisco Systems, Google, Intel, Facebook and others.

UK100

The underlying asset of the UK100 is the FTSE 100 index futures contract. This index is composed of the 100 largest companies listed on the London Stock Exchange by market capitalization. Stock prices in the FTSE indices are weighted according to their market value, and therefore large companies influence the change in the value of the index more than their small counterparts. Examples of companies included in the index are GlaxoSmithKline, HSBC and Royal Dutch Shell

GER30

The underlying asset of the GER30 is the DAX futures contract. The DAX is the index of leading companies in the German stock market and consists of 30 major German companies whose shares are traded on the Frankfurt Stock Exchange: BASF, SAP, Bayer, Allianz and others.

ESP35

The underlying asset of the ESP35 index is the IBEX35 futures contract. The IBEX35 is the benchmark for the stock market of the Madrid Stock Exchange, the main stock exchange in Spain. This index includes 35 companies spread over a wide range of sectors: Banco Popular, Aciona, Bankia, Bankinter, Santander, Repsol, Gas Natural, Telefonica and others.

FRA40

The underlying asset of the FRA40 is the CAC40 index futures contract. The CAC40 is the benchmark stock market index on Euronext Paris and includes major companies such as: Airbus, Alcatel-Lucent, AXA, BNP Paribas, L’Oreal, Orange, Vivendi, Societe Generale, Renault, Michelin, Solvay and others.

HKG33

The underlying asset of HKG33 is the Mini-Hang Seng Index futures contract. This index is the benchmark for the stock market on the Hong Kong Stock Exchange. Four sub-indices have been created to make the index more visible with the classification of listed stocks into four distinct sectors. The HSI in total consists of 50 stocks, including: Hang Seng Finance Sub-index, Hang Seng Utilities Sub-index, Hang Seng Properties Sub-index, Hang Seng Commerce & Industry Sub-index

JPN225

The underlying asset of the JPN225 is the Nikkei 225 Mini futures contract. Nikkei 225 is the benchmark index of shares traded on the Tokyo Stock Exchange (TSE).

AUS200

The underlying asset of the AUS200 is the S&P/ASX 200, which measures the performance of the 200 largest companies listed on the Australian Stock Exchange by market capitalization adjusted

EUSTX50

The underlying asset of the EUSTX50 is the Euro Stoxx Euro Stoxx 50 Index futures contract which consists of a group of listed European stocks. The index includes the shares of a number of the largest companies in Europe, which are determined by Stoxx Ltd, which is one of the largest companies providing indices owned by Deutsche Börse and the SIX Group – such as Allianz, Deutsche Bank, Inditex, Repsol, Unilever and others – this index is used as a measure of the economic situation in Europe

CHN50

The main reference asset for the CHN50 is the China A50 Index. FTSE China A50 Index is an index of the 50 largest A-companies by market capitalization of companies listed on the Shanghai and Shenzhen Stock Exchanges. It is the benchmark for investors wishing to learn about the local market in China or trade based on its performance.