Indices also help traders gain exposure to a variety of companies operating across different sectors.

Trading in index CFDs is possible for all major indices including the FTSE 100, S&P 500, Dow Jones Industrial Average, ASX 200, China A50 and German DAX.

For example, when trading the FTSE 100 as a CFD, you enter into a contract to exchange the difference in the price of the index from the time of opening the position to the time the position is closed.

With CFDs, you can open a position with a fraction of the capital required, since you do not need to actually own any stake or shares. However, before you start on your trading journey, here’s what you should know about indices, how CFDs work and what indices CFDs have to offer.

Indices Facts

• 25 Indices to trade
• Energy, Agriculture and Metals
• Spot and Futures CFDs
• Leverage up to 1:200
• Deep liquidity
• No commissions
• Trade 24 hours a day, five days a week

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How to determine if a client is entitled dividend from Index AUS200?

From the above example, let us assume that the ex-dividend date for Index AUS200 is on the of 18th August 2016. Therefore, a client must have an open position for Index AUS200 before the 18th of August 2016 and it must remain open until the 18th August 2016, in order to have the dividend adjustment of $2.44 per lot. To determine if the dividend adjustment is added or deducted to the client’s account, will depend on whether it is a SELL or BUY on AUS200. If the client has 1 lot of BUY for AUS200, the client will be entitled $2.44 per lot. However, if it is a SELL of AUS200, the client will be deducted $2.44 per lot. The amount $2.44 per lot will be converted to the client’s base currency, before it is being deducted.