Trading CFD indices allow you to speculate on the direction of the underlying index movement and profit from it without actually owning the physical shares. Fortune Prime allow you to trade in a large range of indices from around the world including the Australian S&P 200 Index, US S&P 500 Index, and FTSE 100 Index.
An index CFD is a derivative contract that enables traders to speculate on the price movement of a specific stock market index, such as the S&P 500, FTSE 100, or NASDAQ 100, without owning the underlying assets. It mirrors the performance of the index and allows traders to profit from both rising and falling markets.
Trading index CFDs involves entering into a contract with a broker to exchange the difference in the index’s price between the opening and closing of the trade. Traders can take either a long (buy) or short (sell) position, aiming to profit from price fluctuations in the chosen index.
Some advantages include:
Some risks include:
To start index cfd trading with MetaTrader 4, you will first need to sign up for a live or demo account with an online broker, Fortune Prime, that already supports the MT4 platform.
Consider factors such as your trading strategy, risk tolerance, and familiarity with a particular market. Research the performance, volatility, and news affecting different indices to make an informed decision.
Various trading strategies can be employed, such as trend following, range trading, breakouts, or mean reversion. The choice of strategy depends on individual preferences, market conditions, and risk tolerance.
Index CFDs generally follow the trading hours of the underlying stock exchange. For example, if you’re trading the S&P 500 index CFD, it will be active during the New York Stock Exchange’s trading hours.
Leverage in index cfd trading can depend on the type of trading account you have and your broker as well. At FPG, you can use up to 1:100 leverage
You can trade index cfd only over the weekdays and not during weekends. The index market is open for trading 24 hours a day, five days a week.