Indices Trading

Stock market indices trading via CFDs at AvaTrade

Trading Indices Online

Trading indices online is a great way to speculate on the world’s top financial markets and keep abreast of the top stock markets. Indices are financial derivatives that are calculated as a weighted average of share prices of top performing companies listed on the exchange. At AvaTrade you can find some of the top indices such as S&P 500, NASDAQ 100, FTSE 100, IBEX 35, MIB 40, and much more. The newest addition to our indices offering – BGCANG index and Crypto-10 index.
Start trading stock indices from around the world and enjoy the benefits of trading with a regulated, award-winning broker!

AvaTrade Stock Index Trading

AvaTrade offers one of the largest ranges of stock indices of any online broker, covering markets around the globe. Join AvaTrade for online index trading with competitive spreads, leveraged trading and reliably fast execution.

What Are Indices?

Stock index CFDs are financial instruments that represent the value of the underlying publicly-traded companies. One leading index is the S&P 500, which reflects the collective value of top companies trading on the NYSE. If the overall value of those companies’ shares rises, the price of the S&P 500 will go up.

There are also indices that represent smaller companies trading on the NYSE, such as Russell 2000 index, as well as indices for various stock exchanges around the world, from Chinese HSI, Japan’s NIKKEI to Germany’s DAX and Dutch AEX.

Stock Indices in Financial Markets

Stock indices track and measure particular baskets of related stocks. With thousands of stocks trading on the various major exchanges, indices provide an accurate and efficient way for investors to reliably track overall market sentiment as well as to benchmark against their individual stocks portfolios.

The advantage of trading indices over individual stocks, and using them in passive investment strategies, is that they offer exposure to an entire industry. Investors do not have to perform thorough research on individual company reports; they only need to take a bullish or bearish position, depending on the overall market sentiment. The price movement of indices is also a lot smoother as no one individual stock can induce an extreme price spike. This naturally makes index trading less volatile.

Still, due to the amount of activity that takes place on individual stocks, indices offer sufficient volatility for traders to pick out numerous profitable trading opportunities. This is especially true for day traders and news-based price action followers since indices often reflect the broad economic effects of both political and economic shifts.

For risk-averse and longer-term traders, index investing allows for easy and effective diversification. Instead of investing in just a few stocks, where risk is multiplied, index-based ETFs offer exposure to the entire stock market, while simultaneously reducing the risk of a single company negatively impacting your entire trading portfolio.

Current Leading Indices

AvaTrade has the most popular & frequently traded indices in the industry today.
Instrument name MT5/MT4 Symbol Leverage
Dow Jones DJ30
DAX 30 Index DAX30
CAC 40 CAC40
FTSE 100 FTSE100
S&P 500 S&P500
Nikkei 225 NIKKEI225
Russell 2000 RUSSELL2000
VIX index
Nifty 50
Hang Seng Index HSI
Dollar Index DOLLAR_INDX
Cryptocurrency Index CRYPTO10
Cannabis Stocks Index CANNABIS_IN
OMXS30 Index OMX30
ASX 200 SPI200
China A50 Index CHINA_A50

Our Trading Conditions page details the full range of indices on offer, including spreads, trading hours and lot sizes.

Why Trade CFDs?

CFD index trading offers a number of benefits to the online trader. Trading CFDs (Contracts for Difference) allows you to buy or sell financial instruments without actually owning the underlying asset. These could be commodities, stock, or in the case of stock index CFDs, the value of the underlying indices.

A trader can place a buy order on, for example, the CAC-40. If the price of the index goes up, when he comes to sell he will earn the difference between the buy and sell price. If it goes down, the trader pays the difference.

Because the trader never owns the asset, the costs are far lower, there are no restrictions on short trading, and an investment can be leveraged by up to times.

How AvaTrade Can Help

You can visit the Education section to learn more about CFDs. Visit Sharp Trader, our one stop education portal for comprehensive online trading.
Still having doubts? Take a look at the Avatrade Reviews by our clients!

Make AvaTrade your CFD broker and enjoy the benefits of trading with a regulated, award-winning broker!