A stock index is a good indicative measure of market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue chip stocks listed on the exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index.
Indices have the advantage of allowing traders to take a more comprehensive view of a basket of stocks rather than taking a picture of one individual stock alone. Online CFD and futures-based indices are offered on Mazi Finance Global MetaTrader 4, 5, and cTrader Platforms
Opening Price4951
Difference4970
Difference4970
Gross Profit on Trade19.00 points x 2 contracts ($2 per point) = AUD $38.00
The price of the Australia 200 Index is 4950.00/4951.00. You are of the view that blue-chip stocks are undervalued so you decide to buy 2 contracts at 4951.00. (One contract is equal to $1 per index point).
No commission is charged on Indices.
Four days later, the Australia 200 Index has risen to 4970.00/4971.00 and you decide to take your profit.
You close your position by selling 2 contracts at 4970.00.
Multiple Indices to trade from