Indices are indeed highly favored among CFDs, and Corex Market offers a wide selection of indices from various regions worldwide. Traders can choose from an extensive range of indices, including but not limited to the Australian S&P 200 Index, UK FTSE 100 Index, US E-mini S&P 500, and US DJIA Index.
This diverse array of indices allows traders to access and trade on major market benchmarks from different parts of the globe.
You’re absolutely right. A stock index serves as a reliable indicator of market performance. Indices like the FTSE 100 and DJIA Index are composed of blue-chip stocks listed on the exchange and often reflect the overall market sentiment. When any constituent stock within an index experiences a change in performance, it influences the overall value of that index.
Trading indices provides the advantage of offering a broader perspective by considering a basket of stocks rather than focusing on individual stocks alone. Corex Market provides online CFD and futures-based indices on the cTrader platform, enabling traders to engage in index trading and take advantage of market movements.
(Spot) Equity Indices Spreads
Corex Market provides competitive spreads on all of our cash Indices, ensuring favorable trading conditions for our clients. Some examples of the tight spreads we offer include the E-mini S&P 500 Index with spreads starting from 0.4 points, the FTSE 100 Index with spreads starting from 1 point, the Xetra DAX Index with spreads starting from 1 point, and the S&P 200 Index with spreads starting from 1 point. These competitive spreads allow traders to access these popular indices with cost-efficient trading.
Futures Indices
In addition to Equity Indices, Corex Market expands its offerings to include Futures Indices such as the ICE Dollar Index and VIX Index. These indices provide traders with opportunities to trade and speculate on the value of the U.S. Dollar and market volatility, respectively. By including Futures Indices, Corex Market aims to cater to a broader range of trading preferences and strategies.
How to determine if a client is entitled dividend from Index AUS200?
In the provided example, let’s assume that the ex-dividend date for Index AUS200 is on August 18, 2016. To receive the dividend adjustment of $2.44 per lot, a client must have an open position for Index AUS200 before August 18, 2016, and maintain it until that date. The treatment of the dividend adjustment, whether it is added or deducted from the client’s account, depends on whether the position is a BUY or SELL on AUS200.
If the client holds a BUY position for AUS200 with 1 lot, the client will be entitled to receive $2.44 per lot. However, if it is a SELL position on AUS200, the client will have $2.44 per lot deducted. The adjustment amount of $2.44 per lot will be converted to the client’s base currency before it is applied.
It’s worth noting that if the index is US500, the dividend adjustment would be calculated in USD instead of AUD. Corex Market provides an EX-Dividends Excel sheet that indicates the expected indices that will undergo index point adjustments for the given week. The actual ex-dividend adjustment amounts for each index are updated regularly on the Ex-Dividends Adjustments blog. This information helps clients stay informed about dividend adjustments for different indices.
Indices example
The gross profit on your trade is calculated as follows:
Opening Price
4951
Difference
4970
Difference
19
Gross Profit on Trade
19.00 points x 2 contracts ($2 per point) = AUD $38.00
Opening the Position
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.
Closing the Position
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.