What is Index Trading?
Index Trading is unlike forex or commodities trading where a trader invests in a commodity or forex trading where one invests in a currency. An index is basically a numerical value that includes the major stocks of the local market. For example, Dow Jones Industrial Average, is an index and is a price-weighted average of 30 important stocks traded on NYSE. So this figure reflects the health of the US market or the US economy in general. So when you invest in DJIA you are essentially investing in the US economy.
What index trading enables you to do is to invest in a very large segment of a market, or even an entire market itself. In Phase Markets' trading platform, you can trade almost all of the indices all around the world, from China to US, from Hong Kong to Brazil. We, as Phase Markets, know money never sleeps, so we added almost all of the indices to the
How can you trade Indices?
Indices in Phase Markets are simply CFDs (Contracts for Differences). They track the same values of the actual indices. For example, when you buy DE.30 CFD in Phase Station or Phase Markets MT4, you simply invest on German economy. This CFD mimics the same pattern with the actual DAX 30 Index. So the calculation of this CFD will be like a future contract which behaves like a spot instrument.
Why I trade Indices with Phase Markets?
Phase Markets rolls these future-like CFDs for you. This means you will also benefit the yields / dividends of these indices at the future expiration. First, you will not worry about the new, upcoming expire, second will enjoy the dividend yields at the future expire.
Phase Markets offers the optimum leverages in the market. Up to 1:400. In Phase Markets, you can decide your own leverage ratio by yourself. No one dictates it. Choose the best one for you.
Phase Markets offers a large scale of indices, so that you can diversify your portfolio however you like.