What are index CFDs?

Index CFDs are Contracts for Difference that allow traders to speculate on the price movements of a stock market index without owning the underlying shares. They typically track market benchmarks such as the S&P 500, Nasdaq 100, FTSE 100, or DAX 40.

Depending on the product and jurisdiction, traders may be able to take a long position if they expect the index to rise or a short position if they expect it to fall. Index CFDs are typically traded on margin, meaning traders can gain market exposure with a smaller initial outlay than the total value of the position. Leverage can amplify both gains and losses.

CFD positions may be subject to spreads, commissions (where applicable), and overnight financing charges while the position remains open.