An Index CFD stands for an Index Contract for Difference, and it allows traders to speculate on the price movements of indices representing a basket of stocks available in the the stock market without owning the underlying asset. When a trader purchases an Index CFD, they can go long or short, meaning they can benefit from both rising and falling stock market prices. Index CFDs are leveraged products, and traders can gain great exposure in markets for just a small initial margin deposit.

At Alchemy Markets, we offer an attractive leverage of up to 100:1 with tight spreads and no commissions† for CFD indices trading, so that our traders can make the most of their capital.

Index trading is the buying and selling of a group of stocks (grouped as an Index) by speculating on its performance. An index represents the performance of a group of assets and their share price, and these assets are grouped by shared characteristics, such as the shares of the top 100 companies in the United Kingdom by market capitalisation (FTSE 100) or the shares of the top 500 companies in the United States by market capitalisation (S&P 500).

You can trade indices online with us at Alchemy Markets in the form of Index CFDs. We offer access to the most popular trading platforms in the industry, MetaTrader 4 and MetaTrader 5. On these platforms, you can trade with institutional liquidity, execution speeds of <10ms, and some of the lowest all-in costs with leverage of up to 100:1. Our Index CFD traders can also enjoy transparent pricing with no commissions†, zero hidden fees, and no last look execution. MT5 can be accessed on desktop or on mobile, so you can stay up to date with current market indices prices anytime, anywhere.

 You can trade indices 24 hours a day, 5 days a week. Trading is closed on weekends. There is no singular best time to trade, as it depends on your preferences, goals, and the index you are trading. However, many traders choose to trade indices when the stock market is most active, which is when the number of participants and volume of transactions are at their highest. This is normally when the London and New York trading sessions overlap, which is around 13:00 to 17:00 GMT on weekdays. During this time, the stock market is characterised by higher liquidity and volatility than usual, and traders may be able to find more opportunities.

Indices track the performance of a basket of assets on the stock market, and their prices can shift due to the following factors: individual stock performance of the companies that make up the index, international news, industry events, market sentiment, changes in economic data such as (but not limited to) a country’s interest rates, inflation, and overall economic health, and more.

As Index CFDs are made up of a group of shares that may pay dividends throughout the year, they are also subject to dividend adjustments. Traders should be aware that when a dividend is paid on a share, its value may drop and affect the value of the index they are trading.

Every index is represented by a symbol on MT5, and they are listed under the Indices category on the trading platform. For example, the Dow Jones Industrial Average, which is an index that tracks the top 30 companies listed on the Nasdaq and the NYSE in the United States, is represented by the symbol US30 on MT5. You can add US30 to your charts after finding it on the Marketwatch window, and you can start CFD indices trading once you fund your live trading account.

The most traded indices in global markets include the S&P 500, the Nasdaq100, and the Dow Jones Industrial Average (also known as the Dow or the US 30) in the United States, the Nikkei 225 in Japan, the Hong Kong 50, the DAX 40 in Germany (formerly the DAX 30, also referred to as DE 30), and the FTSE 100 in the United Kingdom

At Alchemy Markets, we offer 10+ Index CFDs, including the most traded indices. Our robust offering includes the Nasdaq100, the US 30, the Nikkei 225, the Hong Kong 50, and the DAX 40, among others. Our traders can enjoy institutional liquidity, low costs, tight spreads, leverage of up to 100:1, and zero-commission trading† on our Index CFDs, with no last look execution on our platforms.