Indices CFDs

What are indices CFDs?

01-65You can trade global indices CFDs with your MT4 platform. For example, you can tade the US indices, the European indices, the Asian indices and the local Australia 200 index. Indices CFDs are OTC derivative product. It’s also trading with margin and leverage. You can use indices CFDs to speculate the market or hedge your existing share portfolio.

Features of Indices CFDs

Trading With Leverage

CFDs are traded on margin. This means that you are able to leverage your investment by opening positions of larger size than the funds you have. The margin is used as collateral to allow you enter into the market. You gain the full exposure of your trading position. If the market moves in your favour, your return is magnified. On the other hand, if the market moves against you, the losses will also be magnified. You can click here for the detailed risks explanation.

Go long or go short

You can trade either directions with CFD. Indices CFDs are OTC products, you are trading with the OTC product issuer OANDA. If you anticipate the market will go up, you can go long with the index CFD. If you think the market will go down, you can short the index CFD.

Trading Cost

Indices CFDs trading are commission free. However, you do need to pay the spread charge. The spread is the difference between buy price and sell price. If you hold your CFD positions overnight, you will also be charged daily holding interest.

Trading Risks

CFD trading can be risky. It is not suitable for all investors. Please ensure you fully understand the risks involved, including leverage, margin call and close out.  You can find details from our Product Disclosure Statement. You can also click here for detailed risks explanation.