Indices are a measure of a group of shares on a stock market exchange, created by combining the value of a number of stocks to create one aggregate value, for example the London Stock Exchange’s FTSE 100 index. Learn more about indices.

How can I trade on indices?

You can start trading on indices by opening a live account. Or, to practice index trading strategies, open a demo account and trade with virtual funds.

What is leveraged trading?

One of the advantages of CFD trading is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it's important to manage your risk.

How does CFD trading on indices actually work?

When you trade CFDs on indices via our platform, you don't buy or sell the underlying index. Instead, you're taking a position on whether you think the index will go up or down.

While you can trade on leverage, meaning you only need to put up a minor percentage of the overall trade’s value, any profit or loss is based on the full value of the trade. As a retail client, you can never lose more than the amount in your account, which is known as negative balance protection.

What happens when indices rebalance?

When indices rebalance, there is negligible impact on the index since it always reflects the value of the constituents at any given time. When a stock is dropped or added to an index, the share price of that company can sometimes see a significant movement in price. Constituent changes on the FTSE 100 and 250 for example, occur every quarter.