Indices trading

Indices are a measure of a section of shares in the stock market, created by combining the value of several stocks to create one aggregate value. Major financial indices include the Dow Jones Industrial Average, FTSE 100, CAC 40, and DAX. The Dow Jones index, for example, represents 30 large publicly-listed companies traded on the New York Stock Exchange.

You can start trading on indices by opening a live account. If you would like to practise your index trading strategy first, you can open a demo account to trade with virtual funds.

One of the features of spread betting and CFD trading is that you only need to deposit a percentage of the full value of your position – the initial margin requirement – to open a trade, known as trading on leverage. Trading on leverage amplifies your profits and losses equally, so it's important to manage your risk.

When you spread bet or 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.

With spread betting, you buy or sell an amount per point movement for the index instrument you're trading, such as £5 per point. This is known as your stake. With CFD trading, you buy or sell a number of units for a particular instrument. For every point or unit that the price moves in your favour, you gain multiples of your stake, and vice versa.

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. See the major global indices you can trade with us.

CMC Markets Germany GmbH is a broker regulated by the German Federal Financial Supervisory Authority (BaFin). It holds funds of private clients separately from its own funds in separate bank accounts. In the unlikely event that CMC Markets Germany GmbH is unable to meet its financial obligations, the EdW would cover any claim for damages by claimants up to €20,000, provided that certain criteria are met.

CMC Markets Germany GmbH is a company authorised and regulated by the German Federal Financial Supervisory Authority (BaFin). CMC Markets complies with the requirements of §84 of the German Securities Trading Act (WpHG) regarding client funds.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.