Advantages

  • High liquidity
  • Reduction of market risks through hedging
  • Ideal tool for trading since it’s highly sensitive to economic news releases
  • Low margin requirements
  • Diversification of investment portfolio between different financial tools

Index investing

LiteForex’s clients can trade indexes by buying or selling them as if they were usual stocks. A trading index includes a certain group of companies, and its price reflects an average price of these companies’ stocks. Contracts for difference on stock indexes have an expiration date and belong to unlisted trading instruments; they let a trader speculate on changes in the price of the instrument that a contract for difference is based on.

Indexes are usually linked to a particular region, and each of them can estimate the state of economy in this region. If an index falls due to a decrease in the price of the companies’ stocks included into this index, it indicates possible problems in the whole economy or in its portions.

For instance, FTSE100 is often used as a barometer of the British economy. Thus, if you consider the economic prospects of Great Britain to be negative, you may go short and sell FTSE100 expecting that the price of the index will decrease. Other popular regional indexes are DAX30 (Germany) and CAC40 (France).

Besides reflecting a general economic state, indexes can estimate the prevailing market sentiment. Thus, you can understand whether most investors are bears or bulls and rely on this information when forming your own strategy.

Those traders who trade indexes have a sheer advantage over other traders due to the high liquidity of this tool, the opportunity of hedging risks and low margin requirements.

Index Symbol Nominal Value of the contract Currency Margin % Tick size Tick price Spread Commission Swap Long Swap Short Trading session (GMT+2)
S&P500 index of the American stock exchange SPX Index contract level*25 USD USD 1.0 0.1 2.5 USD 25 3 -0.4 -0.2 01:05-24:00
DJIA index of Dow Jones Industrial Average of US stock market YM Index contract level*1 USD USD 1.0 1 1.0 USD 60 3 -0.8 -0.2 16:35-23:00
NASDAQ100 index of the American stock exchange NQ Index contract level*10 USD USD 1.0 0.1 1.0 USD 50 3 -0.3 -0.2 01:05-23:15
FTSE100 index of the British stock exchange FTSE Index contract level*1 GBP GBP 1.5 0.1 0.1 GBP 45 3 -0.4 -0.2 Monday 01:05-23:15 / Other working days 00:00-23:15
DAX30 index of the German stock exchange FDAX Index contract level*2.6 EUR EUR 1.0 0.1 0.25 EUR 25 3 -0.6 -0.2 Monday 10:05-18:30
CAC40 index of the French stock exchange CAC Index contract level*1 EUR EUR 1.0 0.1 0.1 EUR 45 3 -0.3 -0.1 Monday 01:05-23:15 / Other working days 00:00-23:15
EUROSTOXX50 index of Eurozone’s blue chips SX5E Index contract level*1 EUR EUR 1.0 0.1 0.1 EUR 45 3 -0.2 -0.1 09:05-23:00
ASX200 index of the Australian stock exchange ASX200 Index contract level*1 AUD AUD 2.0 0.1 0.1 AUD 75 3 -0.8 -0.2 Monday 00:55-23:15 / Other working days 00:00-24:000
IBEX 35 index of Madrid stock exchange IBEX 35 Index contract level*1 EUR EUR 5.0 1 1 EUR 1000 5 -4,06 -3,93 10:00 - 18:30
Hong Kong 50 index of the Hong Kong stock exchange HK50 Index contract level*1 HKD HKD 5.0 1 1 HKD 150 5 -4,37 -3,63 04:15 - 07:00, 08:00 - 11:15, 12:00 - 18:45
Index Symbol Nominal Value of the contract Currency Margin % Tick size Tick price Spread Commission Swap Long Swap Short Trading session (GMT+2)
S&P500 index of the American stock exchange SPX Index contract level*25 USD USD 1.0 0.1 2.5 USD 20 3 -0.46 -0.23 01:05-24:00
DJIA index of Dow Jones Industrial Average of US stock market YM Index contract level*1 USD USD 1.0 1 1.0 USD 26 3 -0.92 -0.23 16:35-23:00
NASDAQ100 index of the American stock exchange NQ Index contract level*10 USD USD 1.0 0.1 1.0 USD 26 3 -0.345 -0.23 Monday 01:05-23:15 / Other working days 00:00-23:15
FTSE100 index of the British stock exchange FTSE Index contract level*1 GBP GBP 1.5 0.1 0.1 GBP 37 3 -0.46 -0.23 03:00- 23:00
DAX30 index of the German stock exchange FDAX Index contract level*2.6 EUR EUR 1.0 0.1 0.25 EUR 14 3 -0.69 -0.23 Monday 10:05-18:30
CAC40 index of the French stock exchange CAC Index contract level*1 EUR EUR 1.0 0.1 0.1 EUR 41 3 -0.345 -0.115 Monday 01:05-23:15 / Other working days 00:00-23:15
EUROSTOXX50 index of Eurozone’s blue chips SX5E Index contract level*1 EUR EUR 1.0 0.1 0.1 EUR 42 3 -0.23 -0.115 09:05-23:00
ASX200 index of the Australian stock exchange ASX200 Index contract level*1 AUD AUD 2.0 0.1 0.1 AUD 66 3 -0.92 -0.23 Monday 00:55-23:15 / Other working days 00:00-24:00
IBEX 35 index of Madrid stock exchange IBEX 35 Index contract level*1 EUR EUR 5.0 1 1 EUR 1000 5 -4,06 -3,93 10:00 - 18:30
Hong Kong 50 index of the Hong Kong stock exchange HK50 Index contract level*1 HKD HKD 5.0 1 1 HKD 150 5 -4,37 -3,63 04:15 - 07:00, 08:00 - 11:15, 12:00 - 18:45
  • * Spreads and swaps are indicated according to the current market conditions (data is recorded in the table, straight from the trading server, and is updated in real time). The Company has the right to change spreads and swaps according to current market conditions, depending on the volatility of one or another financial instrument and/or interest rate size, when such changes are required.
  • ** Swaps are calculated at 00:00 terminal time of each working day: triple swaps are calculated on the night from Wednesday to Thursday.
  • *** When relevant market news is published, Stop & Limit levels can increase threefold.
  • **** SWAP amount is indicated in the settlement currency of corresponding instrument.
  • ***** For the World indices stop&limit pending orders are accepted only under the current trading session and are removed at the end of trading day with the comment “good for day”.
  • ****** World indexes are available on all accounts, except CENT.