What is Index CFDs Trading?
A stock index, or stock market index, is a measurement of a certain part of the stock market. It is usually a weighted average of selected stocks, and heavily used by investors to gauge the overall market atmosphere, and/or to compare it to the returns of other investments. CFDs are Contract For Difference, where you trade the difference in price of a certain product without having to own the underlying product itself. Putting it all together, index CFDs are a method for investors to trade indices without having to own the specific shares or the index itself, allowing them to profit off of moves that move in their direction. An example is the US30, which represents 30 large, publicly owned companies based in the US and how they’ve traded during the session.