What Are Indices?
Stock indices give you a chance to trade an opinion of an economy without having to pick individual stocks. With unique benefits to CFD trading, indices are some of the most popular products to trade.
Indices can have a variety of variables. For starters, the number of stocks in any particular index can vary wildly, from a few dozen companies to thousands. The price of an index is found through weighing. Price-weighted indices are averaged based on the price of each component stock. Capitalization-weighted indices adjust the calculation based on the size of the companies included. Many other factors are represented depending on the stock index in question.
How an Index CFD Trade Works
Unlike forex, when you trade an index, you simply buy or sell based on your opinion of how that index will perform. With ORYX, you pay only the spread to open a trade. We do not impose stop restrictions for most of our products—you can easily scalp major indices. Plus, our smaller contract sizes means you can minimize your exposure in the market.
Want an ideal environment to trade US, European, Asian and Australian stock markets? We offer enhanced index CFDs, one of the most unique offerings in the industry and a great benefit for scalpers and news and EA traders.
Why Indices With ORYX ?
No Minimum Stop Distance
Lower Transaction Costs
Trade On Margin
One of the most popular methods of participating in the capital markets is to purchase corporate stock or an index fund. While these activities are the backbone of many investment strategies, they have several disadvantages. Large fees, considerable required capital and convertibility issues limit their utility to active traders.
In contrast, the trading of an enhanced index CFD has several unique advantages:
- Limited Trade Restrictions
- Low Transaction Costs
- Availability of Leverage
- Variable Trade Sizes