6 Reasons Trading Index CFDs Continues to Grow in Popularity
There’s no doubt that Index trading has become more popular over the past few years. And why not? Index trading gives you exposure to a collection of stocks, not just one or two individual stocks.
For example, if you trade the S&P 500 Index, you get exposure to the 500 leading companies in the US. This means you’re trading on the performance of the leading US large-cap stocks.
If you trade the NASDAQ 100, which is known as the non-financial and technology-heavy Index, you gain exposure to some of the leading online and tech companies such as Facebook, Amazon, Netflix and Google, also known as the FANGs.
Aside from the US, Europe also has a number of popular and heavily traded indices including the DAX in Germany and the CAC 40 in France. In the UK, you can trade the main Index which is the FTSE100. For those who want even broader access to the leading companies in Europe, you can trade the Stoxx50 index as well.
All these indices open up trading opportunities in different markets you may not have accessed before. At the same time, Index trading provides deep liquidity. The constant flow of buyers and sellers means you can easily get in and out of trades if required.
What are the most popular indices to trade?
Across the globe, you can access the different indices that provide ongoing trading opportunities, liquidity and diversification.
Here are the major global indices available at Synergy FX and the code we use on the MT4 platform.
- US – Dow Jones Industrial Index (DJ30), Nasdaq 100 (NAS100), S&P500 (US500 Index)
- Europe/ UK – DAX 30 (GER30), FTSE100 (UK100), Euro Stoxx 50 (STOXX50)
- Asia – Nikkei225 (JP225), Hong Kong 50 (HK50), China A50 Index (CHINA50)
- Australia – S&P ASX 200 index (AUS200)
Benefits of Trading Index CFDs
Index trading carries a lot of benefits. Whether you are new to trading who want to explore the different markets before deciding on which one to focus on, index trading can give you that exposure to a wide range of markets.
And if you are an advanced trader in search of new strategies, index trading can be used as a hedging tool to protect your portfolio and to enhance your overall diversification.
How to trade indices?
Using the SynergyFX trading platform, you can trade the different indices to take advantage of trading opportunities around the world.
Open an account and you can start your index trading today.