Finsa Markets has made trading with indices a focal point. We offer some of the cheapest prices on indices in the industry, and are one of very few brokers that also offer differential spread trading to our clients (see below)
A stock index is a weighted average of a group of stocks within a certain sector or market. By trading an index instead of shares in a particular stock, you obtain diversification of risk.
A highly popular index among traders is the German DAX, composed of the 30 largest companies in Germany. This, alongside the American Dow Jones index, are arguably the most popular indices among the trading community. Finsa Markets offer these at a mere 1.0 point spread. Below you will find examples of spreads in the most traded instruments. Also, remember that due to our Bonus Schemes the actual spread size might come in even lower than printed in the list.
|Dax, Dow, Euro Stocks 50||1.0|
|FTSE, CAC 40||0.8|
When it comes to trading the differential between a pair of indices, Finsa Markets is a leading provider. Say you have the opinion that the Dow will go up more in the short term than the FTSE index, then you would want to go long the “Dow/FTSE Difference”. It is a smart way of essentially “buying strength – shorting weakness” in just one index rather than two indices.
Some of the differentials, you can trade with Finsa Markets:
|Germany 30 / Euro Stocks 50|
|Germany 30 / France 40|
|UK 100 / Euro Stocks 50|
|Wall st 30 / UK 100|
If you have any further questions, please feel free to call or email us.
Occasionally, there may be huge swings in the price of an index. To many traders the volatility is the exact reason why they find trading indices so attractive, but by the same token this also means there is an increased risk to your capital. Bear in mind, that Spread trading is a leveraged product.