CFD Indices

  • At City Index, we offer some of the tightest fixed spreads on our indices markets, including 1 point on the 4 major indices – UK 100, Wall Street, Germany 30 and France 40 – during market hours. We also offer tight spreads on the Hong Kong 40, Singapore and Japan 225 indices.  

    Indices are the most widely CFD traded markets in the world, with indices such as Wall Street and the UK 100 being one of the most popular among new traders. With your City Index account you can trade CFDs on the majority of indices across the globe. As well as the other benefits, stock index CFD trading with City Index is commission-free – with the cost of trading is built into the spread. 

    We quote most of our indices around the clock, enabling you to trade 24 hours a day, even when the underlying Index is closed. Spreads may vary according to the underlying market spread, market conditions and liquidity. With CFD Index trading, if you think a market will rise you buy (go ‘long’), and if you think it will fall you sell (go ‘short’). As with traditional share dealing, CFD prices are quoted as a Bid (the price you can sell at) and Offer (the price you can buy at). The net result of a CFD trade is the difference between the opening and closing value of a contract. 

    Indices Example

    Market volatility is causing major fluctuations in stock prices in the US. Our CFD spread for the US Tech 100 is 2291/2293 (sell price/buy price). 

    Going Long

    You believe the US Tech 100 will rise and decide to buy 10 CFDs at 2293. 

    Over the course of the week the US Tech 100 rallies thanks to some bullish company results. Our new price of the US Tech 100 is2306/2308. Having reached your profit target, you decide to close your position by selling 10 CFDs at 2306 (our sell price). 

    Result: The opening value of the CFD trade is $22930 (10 CFDs x 2293). The closing value of the CFD trade is $23060 (10 CFDs x 2306). This nets you a $130 gain ($23060 - $22930). 

    Alternative scenario: If however the price of the US Tech 100 had fallen to 2263, you would have lost $300 (2293 - 2263 x 10 CFDs). 

    Going Short

    You believe the US Tech 100 will fall and decide to sell 10 CFDs at 2290. Over the course of the week the US Tech 100 falls after some poor company earnings. Our new price of the US Tech 100 is2276/2278. Having reached your profit target, you decide to close your position by buying back 10 CFDs at 2278 (our buy price). 

    Result: The opening value of the CFD trade is $22900 (10 CFDs x 2290). The closing value of the CFD trade is $22780 (10 CFDs x 2278). This nets you a $120 gain ($22900 - $22780).

    Alternative scenario: If however the US Tech 100 had rallied to 2320, you would have lost $300 (2320 - 2290 x 10 CFDs). For the purpose of simplicity, financing charges and payments have been omitted from these illustrations. 

    Find out more about our financing charges.

  • Any Questions?

    Help and Support
     
     

    Contact Us

     

    Login to Chat

      Email us 

     

     Phone+65 6826 9988