Global Primes stock Indices allow traders to take a view on the world’s largest and most important global stock markets without trading or owning the underlying shares. Indices such as the DJIA index (US30) represent a basket of the 30 largest companies listed on US stock exchanges.
Traders across the world will always know the value of the S&P500 and DJIA in order to understand the current market sentiment, e.g. risk on or risk off, bullish or bearish, am I a buyer or seller.
Disclaimer: Spreads from ‘Trade Proofer’ monthly spread data September 2019 report.See All Avg. Spreads
Global Primes Index CFDs are contracts for difference over a range of global stock market indexes. For example, the US500 and NAS100 Indices represent a basket of blue chip stocks listed on US stock exchanges. This means that when you trade an Index CFD, you are taking a position against the broader market rather than a single stock. Index CFDs also have the benefit of trading outside of the normal market hours of the stock exchange, similar to how the FX market trades. This means traders can manage their risks more effectively.
Index CFDs are valued in the currency of the respective stock exchange which they derive their value from. For example, the US Indices (US500, US30 and NAS100) are valued in US dollars, the GER30 is valued in Euros and the AUS200 in Australian dollars.
The gross profit on your rate is calculated as follows:
5 contracts NAS100 x 7,798.20 = 38,991 USD
38,991 USD x 1% = 389.91 USD
5 contracts NAS100 x 7,990.30 = 39,951.50 USD
The price of the NASDAQ100 is 7,798.20 bid /7,799.80 ask. You would like to buy 5 contracts at 7,798.20 ask. (1 lot = 1 contract)
You have 5,000 AUD balance and the margin is 1%.
Two days later, the NASDAQ100 has increased to 7,990.30. Since you are in profit, you would like to close your position by selling 5 contracts.
View our trading conditions across our full range of products to see how trading with Global Prime is your next best move.
Live and historical average spreads
Current swap rates and overnight interest charges
Specs and examples across all products
The open/trading hours across all of our products
48 FX, 20 Commodities, 14 Indices, 5 Crypto
Individual, Joint, Corporate and Trust accounts
7 AUD, 7 USD, 6.2 EUR, 5.4 GBP, 9.5 SGD, 9 CAD
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