We offer some of the tightest spreads on our indices markets, including 1-point on the 4 major indices – UK 100, Wall Street, Germany 30 and France 40 – during market hours.
Indices are the most widely traded markets in the world, with indices such as the UK 100 being one of the most popular among new traders. With your City Index account you can trade CFDs on the majority of indices across the globe and our most popularly traded indices include the UK 100, Germany 30, US S&P, Wall Street, Japan 225 and Australia 200.
We quote most of our indices around the clock, enabling you to trade 24 hours a day. Spreads may vary according to the underlying market spread, market conditions and liquidity.
With CFD trading, if you think a market will rise you buy (go ‘long’), and if you think it will fall you sell (go ‘short’). As with traditional share dealing, CFD prices are quoted as a Bid (the price you can sell at) and Offer (the price you can buy at). The net result of a CFD trade is the difference between the opening and closing value of a contract.
Indices Example
Market volatility is causing major fluctuations in stock prices in the US. Our CFD spread for the US Tech 100 is 1890/1893 (sell price/buy price).
Going Long
You believe the US Tech 100 will rise and decide to buy 10 CFDs at 1893.
Over the course of the week the US Tech 100 rallies thanks to some bullish company results. Our new price of the US Tech 100 is1906/1909. Having reached your profit target, you decide to close your position by selling 10 CFDs at 1906 (our sell price).
Result: The opening value of the CFD trade is $18930 (10 CFDs x 1893). The closing value of the CFD trade is $19060 (10 CFDs x 1906). This nets you a $130 gain ($19060 - $18930).
Alternative scenario: If however the price of the US Tech 100 had fallen to 1863, you would have lost $300 (1893 - 1863 x 10 CFDs).
Going Short
You believe the US Tech 100 will fall and decide to sell 10 CFDs at 1890.
Over the course of the week the US Tech 100 falls after some poor company earnings. Our new price of the US Tech 100 is1875/1878. Having reached your profit target, you decide to close your position by buying back 10 CFDs at 1878 (our buy price).
Result: The opening value of the CFD trade is $18900 (10 CFDs x 1890). The closing value of the CFD trade is $18780 (10 CFDs x 1878). This nets you a $120 gain ($18900 - $18780).
Alternative scenario: If however the US Tech 100 had rallied to 1920, you would have lost $300 (1920 - 1890 x 10 CFDs).
For the purpose of simplicity, financing charges and payments have been omitted from these illustrations. Find out more about our financing charges.
Education and Resources
Our superior trading platform is packed with resources to help you make better-informed CFD trading decisions. Our resources include live news feeds from Dow Jones Newswires and a charting package that is available free of cost to all City Index trading account holders.
Our specialised webinars, held by our team of trading experts, enable you to learn trading at your own pace and from your own computer, no matter where you are. Find out more about our webinars