If you’re after tight spreads and great execution then you’ll love our Index CFD offering. We use specialist non-bank market makers to derive a fast and sharp price across our range of Index CFDs. You’ll frequently see one of the tightest spreads in the world on the Dax and Dow, two of the most popular indices for CFD traders.
You’ll be able to verify our performance with trade receipts that show the bank who filled your trade, execution speed, slippage and more.
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Our Indices CFDs allow you 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. These Indices can be bought or sold using a CFD with the aim of generating a profit.
Most traders will know the value of the S&P500 and DJIA in order to understand the current market sentiment/regime/theme, e.g. risk on or risk off, bullish or bearish, am I a buyer or seller. Even if you’re not an Index trader, these are markets that you’ll want to keep an eye on.
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.
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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.
Disclaimer: Spreads from ‘Trade Proofer’ monthly spread data September 2019 report.
48 FX, 20 Commodities, 14 Indices
Individual, Joint, Corporate and Trust accounts
7 AUD, 7 USD, 6.2 EUR, 5.4 GBP, 9.5 SGD, 9 CAD
Our tight ECN spreads rank among the best brokers globally.
Tier-1 banks, non-bank market makers, ECNs & dark pools.
48 FX, 20 Commodities, 15 Indices, 5 Digital Ccy. 20 Shares
We verify that we are ECN & all claims with trade receipts!
No brakes on your trading. Scalper, EA, HFT, News & EA friendly.
Fast execution speeds
from as low as 1ms.
CFDs are filled by our non-bank market makers who specialise in Indices and Commodities trading to ensure the tightest prices and best execution.
From the above example, let us assume that the ex-dividend date for NAS100 Index is on the 15th May 2019. The owner of the CFD must have an open position for Index NAS100 before the 15th May 2019 and it must remain open until the 15th May 2019 in order to receive the dividend.
The owner (long position) of the CFD will receive the dividend while a seller (short position) will pay the dividend.
Index CFDs are cash instruments and subject to daily rollover fees. 3 day CFD financing is applied to open positions on Friday to cover the weekend (as opposed to 3 day FX swaps applied on Wednesday rollover).
Our CFD prices come from our stack of non-bank market makers who derive prices by way of a fair value estimate of the price in the underlying market (futures, indices, stocks etc) whilst accounting for factors such as their exposure and hedging requirements.
Indices are a measurement of the price performance of a basket of stocks from an exchange. For instance, the AUS200 follows the 200 largest companies on the Australian Stock Exchange and the US500 that tracks the largest 500 companies by market cap on the following exchanges; NYSE, NASDAQ, CBOE. Our indices CFDs are derivative securities that track the underlying markets as well as the pricing from our CFD providers and enable clients to speculate on price movements without having to actually own the actual futures product.
CFD trading is extremely risky. As you are trading a leveraged product, you will have the ability to open positions that are far larger than your account balance. Accordingly, it is possible to lose more than your account balance.
Maximum leverage for all CFDs is 1:100.
Market conditions will vary outside of market hours and the spreads on these products will be wider. The underlying market that Indices CFDs are based on can be closed or less liquid. CFD providers are able to offer a fair value estimate of where the futures market would be, enabling 24h pricing. Please be wary of this and ensure that you are aware of the increased volatility present outside of market hours.
Positions held overnight (17:00 ET/EDT) will be charged or paid a swap/financing fee.
0.10 lots except for US500, JPN 225 and HK50, these have a 1 lot minimum.
The market hours for indices follows the underlying market from which they are based. For instance, US500 will follow the NYSE market hours whereas the ASX will follow the Australian market hours. For more information https://www.globalprime.com/trading-conditions/market-hours/
One index point is = to 1 unit of base currency. For instance, one index point of the UK100 is = to 1 GBP whereas 1 index point of the NAS100 is = to 1 USD.
Global Prime has some of the tightest CFD spreads in the world. The average spread on indices can be found at the following link: https://www.globalprime.com/trading-conditions/spreads/
Yes, dividend payments are adjusted after the fact and are either charged or credited to your account depending on your position - usually on the day following the ex-dividend date.