What is Indices Trading?
A stock index is one of the most popular investment products among investors. Stock indices track the performance of a basket of individual stocks, enabling the investor to trade on the performance of that stock market as a whole, rather than buying/selling shares in individual companies within the index.
A stock index reflects local economic conditions. The popular/main stock markets are: US30, UK100, Japan Index and HK50. Ideal investment opportunities: All index transactions can be traded in real-time immediately. Low entry point to the market. Investors may invest in small deal sizes and may benefit from the international stock market fluctuations with long-term and short-term buy-in and sell-out strategies.
Advantages of Indices Trading with Nagamasa Global
- Trade index from around the world
- Tightest spreads in the market
- Low margin requirements
- Negative balance protection
- Guaranteed no price slippage, no requotes and no rejections
- Complete transparency of market with only the best bid/offers being displayed
Stock Index CFD: Trading on Margin
Investing in stocks has a wide appeal globally, but the barrier to entry can often be high. Say you want to invest in an economy through an index to attempt to mirror the performance of that economy. You could simply buy shares in all the stocks on the index, but that could get costly, especially in light of broker's fees for transactions. Some turn to the futures market, trading the index through an ETF. The ETF is a fund that has shares in all the stocks in the index. With ETFs, you generally have 100% margin, meaning you have to put up the full value of the index to participate.
Nagamasa Golbal’s index products, however, are traded also as contracts for difference (CFDs). With CFDs, you can place trades on margin. You put up a fraction of the capital and still get the full value of the trade. But that's not all.
Trading indices as CFDs removes the barrier to trading. When you trade on the futures market, you have settlement periods. Short selling is typically impossible without a significant account balance. Plus the fees for each transaction are significant.
Index CFDs, on the other hand, have no settlement periods, short selling is available, and you only pay the spread. With CFDs, you can scalp the market much more easily, decrease your risk exposure and be able to enter the market with lower capital requirements in your account.
We would like to highlight that trading on margin doesn't come without risks, as retail clients could sustain a total loss of deposited funds, where Professional clients could sustain losses in excess of their invested capital.
Before starting to trade, you should always ensure that you fully understand the risks involved.
How an Index CFD Trade Works
Unlike forex, when you trade an index, you simply buy or sell based on your opinion of how that index will perform. With FXCM, you pay only the spread to open a trade. We do not impose stop restrictions for most of our products—you can scalp major indices. Plus, our smaller contract sizes mean you can minimise your exposure in the market.
Trade Your Opinion of Global Stock Markets
Want an ideal environment to trade US, European, Asian and Australian stock markets? We offer scalpers, news and traders with enhanced execution on index CFDs, which we believe can be considered as one of the most unique offerings in the industry.
Why Trade Indices with Nagamasa Global?
No Minimum Stop Distance – Nagamasa Global’s Enhanced CFD Execution means you trade without minimum stop distances on most products.
Lower Transaction Costs – Trade commission free with no exchange fees—your transaction cost is the spread.
Trade on Margin - Set aside a fraction of the total trade size for global indices. See Margin Requirements.
Trade Sizes – Micro CFDs – Micro-contract sizes give you the flexibility to risk less per trade.
With Nagamasa Global’s index products, you can also trade in bear markets with more ease than in the stock market. Think a market will fall? Sell it just as easily as you can buy rising markets.
With Nagamasa Global, trading or spread betting a stock index CFD is similar to trading forex. All you need to know is the symbol and the contract size.
Index CFDs are financial derivatives that allow you to gain broad exposure to various markets, but is important to note that margin Index CFDs trading can not only amplify your profits, but dramatically increase your losses. Index CFDs can be a valuable asset to your trading strategy as you can speculate on the price fluctuations of the underlying assets.