Trading stocks indices through CFDs continues to rise in popularity among traders. Indices are considered a safer way to participate in the stock market, rather than trading individual stocks.

With index CFDs, traders can spread risk across an entire market or market segment.

Poor performance of a single stock is compensated for by the better performance of other stocks in the index. This results in lower levels of volatility.

Stocks Facts

• 100+ stocks
• ASX, NASDAQ, NYSE
• Ultra fast execution
• Leverage up to 1:200
• Deep liquidity
• Earn dividends
• Trade 24 hours a day, five days a week

Open Account

How does Stock Trading work?

Stock trading involves buying or selling a share of ownership in an individual company listed on an exchange such as the ASX or NASDAQ. Stocks are typically traded without leverage and through a stock exchange. Stock CFDs however can be traded using leverage and are done so over-the-counter (OTC). Participants are able to access stocks of individual companies, building positions in an individual company or in a specified sector of the economy.

---

Participants often build strategies with diversification in mind to diversify away unsystematic risk across a number of companies or a range of sectors. Investors may choose to build positions in defensives if they are predicting volatility. Similarly, investors may decide to build a portfolio around a growth strategy consisting of small to mid-cap technology stocks.