Indices Trading
Trade Indices with an Award-Winning Broker
Austin Pips provides traders with exposure to the major global stock indices through Index Contracts for Difference (CFDs), offering competitive leverage on world-class trading platforms. Online CFD indices trading is an excellent way to engage with top global stock markets.
With Austin Pips, you can trade CFD indices futures from around the world, with margin requirements starting at just 1%. For example, you can trade the AUS200 cash indices at AU$1 per point. Stay on top of global stock index movements with access to major indices like the NASDAQ 100, S&P 500, EUREX, and more.
We’ve partnered with leading financial institutions, both banking and non-banking, to ensure a deep liquidity pool. This ensures you receive the best available market prices and experience ultra-low latency order execution.
What are the benefits of Indices trading?
- Trading CFD Indices allows you to speculate on the price movement of the underlying index without the need for physical ownership of any shares.
- When you trade indices, you have the opportunity to take positions on both bullish and bearish market moves, opening up a wider range of trading opportunities.
- With competitive leverage, you can increase your exposure to the market with a relatively small initial investment. However, it’s important to remember that CFD indices are a leveraged product, meaning your potential losses can be magnified as well.
- Powered by advanced platforms like Austin Pips, Austin Pips gives you access to live streaming prices, cutting-edge technical analysis, and comprehensive charting tools to support your trading strategies.
What is the Best Platform to Commodities?
Discover the advantages of trading CFD indices on one of the most powerful platforms available — Austin Pips. Available across both desktop and mobile devices, Austin Pips is ready whenever you are.
Spreads from 0.0 pips & leverage up to 500:1
Customisable interface, including customizable colours for technical indicators
One-click trading for seamless execution
MarketWatch for real-time market monitoring
Live price streaming on both live and demo accounts
128-bit encryption for secure and safe trading
Use Expert Advisors (EAs) for automated strategies
Customisable alerts to stay on top of the market
Fully compatible with iOS, Android, and Mac devices
4 Reason to choose Austin Pips
Global Regulated Broker
Boost your trading experience with a licensed and fully regulated Global forex broker, with multiple awards to their name.
Trading Platforms
Give your forex trading an edge with robust, feature-rich and easy-to-use Austin Pips.
Low Latency Execution
Get all the available market prices and tight spreads, with ultra-low latency execution and minimal slippage.
Forex Trading Leverage
Leverage of up to 500:1 in over 50 currency pairs and widen your exposure to the global forex markets
What is Commodities Trading?
Stock Market Indices serve as a benchmark for specific stock markets, representing the collective value of a selected group of stocks within a country. These indices reflect the overall current and historic performance of the underlying stocks, providing a clear snapshot of market trends.
The calculated value of a stock index is used by investors as an indicator of the current worth of the constituent stocks. By comparing current and historic index levels, investors can gain insights into potential returns over time and make informed decisions about their investments.
Every stock exchange around the world has a benchmark stock index, and many have multiple. These indices are collections of individual stocks, often ranked and calculated by independent institutions like major banks or specialist companies such as the FTSE Group or Deutsche Börse. These indices can vary in size and scope.
For example, the FTSE 100 tracks the share prices of the top 100 companies listed on the London Stock Exchange, based on market capitalization. Similarly, the ASX 200 tracks the top 200 companies listed on the Australian Securities Exchange (ASX), while the SPI 200 futures contract is based on the ASX 200 index.
Since it’s impractical to track every company listed on a stock exchange, traders often turn to index trading. By trading indices, they can measure the overall performance of a country’s stock market and its broader economic health. Traders speculate on the price movements of these indices, aiming to profit when their value rises.
An Example of Indices CFD Trading
In this scenario, the price moved in your favor, allowing you to lock in a profit. However, if the price had declined and moved against your prediction, you could have faced a loss. This continuous evaluation of price movements and the resulting profit or loss occurs daily, leading to a net return (either positive or negative) on your initial margin.
In the case of a loss, if your free equity (account balance + profit/loss) falls below the margin requirement (in this example, 896.6), the broker will issue a margin call. If you fail to deposit additional funds and the market continues to move against you, once your free equity drops to 50% of your initial margin, the position will be automatically closed at the current market price, known as a “stop out”.
Notice how even a small difference in price can create significant opportunities to trade. This small difference is referred to as a “pip” or “percentage in point”. In the case of indices trading, 1 pip is equivalent to a price increment of 1.0, also known as an Index point.
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What Makes a Good Trading Commodity?
When trading commodities, liquidity is the key factor to consider. Liquidity determines how easily you can buy or sell a commodity in the market. A highly liquid market is typically associated with lower risk, as there will be a greater chance of finding a buyer or seller at any given time. A well-established market for a commodity ensures there are consistent buyers and sellers, which increases market efficiency.
High liquidity also reduces the risk of slippage, which occurs when the bid-offer spread is too wide. This is particularly common in markets with lower liquidity, where price fluctuations can cause unexpected losses. Liquidity plays a crucial role in distinguishing the most-traded commodities from those with less market activity.