Which Stock Index CFDs you can trade on LMFX?

By opening an account with LMFX, you can trade the following Stock Indices through MT4 trading platforms.

  • AUS200
  • FRA40
  • GER30
  • SPA35
  • UK100
  • USA100
  • USA30
  • USA500
  • USDIndex

Stock indexes are usually treated as a measure of the economic strength of a particular country’s business segment. These Stock Indices include the top companies in the country, so weak economic performance tends to lower share prices as consumption and business activity become more active, but is generally reflected as higher share prices. These indices can also be seen as proxies for national currencies.

Many novice traders find trading stocks in a particular company a bit complicated, so some start by trading stock indexes. After all, related reports such as index drivers, economic data and the latest political information are open to the public and can be easily viewed online. For example, GDP reports and employment data tend to influence the price movements of the index, especially if they are below or above expectations.

Invest in Stock Indices with LMFX

One account for all Stock Indices

The easyMarkets platform provides the largest stock market Stock Indices.

Traders pay close attention to the largest equity market Stock Indices in the United States, Europe, Asia and emerging markets, which show strong trends and reactions to top data releases and financial events. The stock index consists of Dow, S & P500, Nasdaq, German DAX, French CAC40, FTSE100, Nikkei, China50, ASX and more. All are available on the easyMarkets platform.

You need to know about spreads and pip values ​​when calculating profits and losses in trading these Stock Indices. It is also important to note the minimum contract size and margin when calculating the position size per trade before determining the amount to deposit in the trading account.

Stock Indices can be traded by both short-term and long-term traders. Economic announcements and headings tend to be a source of income for short-term traders, as they can lead to price spikes in trading witnesses. On the other hand, these economic reports and overall market sentiment also provide guidance for long-term traders to understand potential trends and reversals.

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How does Stock Index trading work?

When trading the US stock index, it is also helpful to keep an eye on the earnings announcement, as the market tends to fluctuate in certain directions due to the earnings announcement. Earnings announcements usually begin one month after the end of the quarter to guide future market trends. If the financial results of major companies are better than expected or if they improve compared to the previous fiscal year, stock prices may tend to rise. On the other hand, pessimistic earnings outlooks and downward revisions to the outlook can lead to a decline in the stock index.

The index is settled between the buyer and the seller by the difference in price at the start and end of the contract through a CFD (Contract for Difference) transaction. This means that overnight interest rates will be applied and will be positive or negative depending on whether you have a long position or a short position. These rates are usually based on benchmarks such as LIBOR or central bank interest rates. And, like the commodities handled in margin trading, index trading has certain risks that traders should be fully aware of. Learn more about easyMarkets products, spreads, pips, contract sizes and margins.

Invest in Stock Indices with LMFX