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AximTrade offers the following stock index CFDs with 1:100 leverage.
- DE40.ax (DAX 40 Index)
- US500.ax (S&P 500 Index)
- US30.ax (Dow Jones 30 Index)
- USTECH.ax (Nasdaq 100 Index)
- J225.ax (Nikkei 225 Index)
- UK100.ax (FTSE 100 Index)
- HK50.ax (Hang Seng Index)
- EUR50.ax (Eurostoxx 50 Index)
- AUS200.ax (S&P ASX 200 Index)
- FR40.ax (CAC 40 Index)
How to start trading Stock Indices on AximTrade
To start trading stock index CFDs on AximTrade’s platforms, sign up by following the below steps today.
- Create a Profile with AximTrade
Create a profile with just your email address and mobile number to access AximTrade’s Member Area using 2FA security.
- Choose your type of Account
Check out the account types and specifications and decide what’s best for you. For beginners, you can simply create a demo account to familiarise yourself with trading.
- Start Trading
Download MT4 and make your initial deposit, from as low as USD1. Reach out to AximTrade’s 24/7 support should you encounter any issues and require AximTrade’s assistance.
Finding the right broker is essential in making good trades and remaining profitable. Choose the broker who has exceptional trading conditions
Indices are the most important trading instruments. Indices offer many advantages. Therefore, traders deserve to know about it. In this article, we will review three important indices in the US and find out their advantages. Let’s find out.
Stock Index Standard & Poor 500 (S&P 500)
Standard & Poor 500 (S&P 500) is one of the most-cited American indexes because it represents the stock performance of the 500 largest publicly-traded companies in the US. However, if you look at the list, you will find 505 symbols, this is because some companies have two classes of shares. An example is Facebook. The market capitalization of the S&P 500 accounts for 70–80% of the total stock market value in the US. In addition, the index covers all industry sectors in the US. The S&P 500 considers various company factors such as market size, liquidity and industry groupings before accepting it. This index actually gives higher weight to large companies, not more expensive. The market capitalization of a single company should be close to $6 billion at least. Once in a quarter, shares will be added or removed when the rules change,
The S&P 500 is calculated by taking the total market capitalization of 505 stocks and then dividing by the index indicator. The index only considers stocks that are publicly available for trading.
The Nasdaq Composite Index
The Nasdaq Composite Index is a stock index with more than 3,300 companies listed on the Nasdaq stock exchange. Unlike the S&P 500, the list of companies is not limited to companies that only have their headquarters in the US. To be listed, a security must specifically be listed on the Nasdaq Stock Market (if it was listed on another stock market in the US before January 1, 2004, and continue to maintain the listings). There are also other restrictions on the types of securities. Only American Depositary Receipt (ADR), common stock, limited partnership interest, similar common stock, Real Estate Investment Trust (REIT), Shares of Beneficial Interest (SBI), tracking stocks can be included in the index. When a security no longer meets the criteria, it will be removed from the index.
This index is calculated by multiplying the total value of shares by the last price of each security. Then, the number is divided by the index divisor. The index is calculated throughout its daily trading with confirmation of the final value at 4:16 pm
Dow Jones Industrial Average (DJIA)
Dow Jones Industrial Average (DJIA) is the price-weighted average of 30 North American stocks from various industries traded on the New York Stock Exchange and the NASDAQ. The DJIA is America’s second-oldest stock market index. Long ago, the index represented the health of the American economy. At its launch, this index included 12 stocks that were almost purely industrial. Currently, the index only includes companies with significant growth and investment capacity. Therefore, the list of shares is not fixed, companies enter and leave based on certain non-quantitative criteria. When a company makes it through a period of the financial crisis, it will be expelled. At the same time, the DJIA index also excludes transportation and utilities, because it is already included in the Dow Jones Transportation Average (DJTA) and the Dow Jones Utilities Average (DJUA).
The DJIA index uses a price weighting methodology so that higher weighting means higher stock prices. The DJIA is calculated by adding up the component share prices and dividing by a divisor. The Dow Jones index shows the average share value in the selected capital stock for calculation at the time the indicator composition is approved.
Stock index price prediction
Now let’s move on to the most important part for any investor. While none of the above indices are the same in the number of companies and how they are calculated, there are some rules you can use to predict their direction.
- Check the list. The index consists of different securities. Each has strengths. The number forms the strength of the overall index. The prices of the stocks that make up the index may change due to market capitalization, mergers, and acquisitions. This can cause not only a change in the index, but also a change in the list of accompanying stocks.
- Be aware of the industry. After knowing the type of stock that will affect the direction of the index, then you must determine the industry. You should know that it is not only the components of the index that have an impact on its direction but also the situation in the sector.
- Check the correlation between the domestic currency and the index. Generally, you will see a positive correlation.
- Finally, you must remember that generally, these indices reflect the economic health of the country. Moreover, they are influenced by market sentiment. In an uncertain situation, these indices tend to weaken, while positive economic data will lift them up.
Profits from index trading
You don’t need to be confused about which stock to trade.
An index is a hedging instrument that can diversify risk due to unexpected movements. Stocks are sensitive to market sentiment. So, any news can cause high volatility.
Indices are a more stable instrument than stocks.
In conclusion, indices are one of the most reliable trading instruments. They differ in number of shares, industry, method of measurement. If you want to be successful in index trading, follow the simple rules you learned in this article.
Comparison of Account Types of AximTrade
In AximTrade, the MT4 platform supports currency trading, stock index CFDs, and gold and oil CFD trading, but does not provide stock CFD trading.
As shown in the table below, standard accounts, cent accounts, ECN accounts, and Infinite accounts can access the MT4 platform.
|Base Currency||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR||USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB, SGD, ZAR||USD, EUR, GBP, JPY, CHF, AUD, NZD, CAD|
|Contract size||100,000 = lot||1,000 = lot||100,000 = lot||100,000 = lot|
|Negative Balance Protection (NBP)||Supported||Supported||Supported||Supported|
|Minimum Spread||1.0 pip||1.0 pip||0.0 pips||3.0 pips|
|Trading Commission||None||None||$3 per lot||None|
|Maximum open/pending orders per client||200 Positions||200 Positions||200 Positions||50 Positions|
|Minimum Trading Lot||0.01 lots||0.01 lots||0.01 lots||0.01 lots|
|Maximum Trading Lot||50 lots||150 lots||50 lots||25 lots|
|Required Minimum Deposit||$1||$1||$50||$1|
|Margin Call %||60%||60%||60%||60%|
|Stop Out %||30%||30%||30%||0%|
|Account Opening Pages||Open AximTrade Standard Account||Open AximTrade Cent Account||Open AximTrade ECN Account||Open AximTrade Infinite Account|
Any AximTrade user can hold up to 15 active trading accounts.
Each active member area is allowed to open up to 7 standard accounts, 2 cent accounts, 5 ECN accounts and 1 Infinite account.
Deposits, withdrawals and other functions related to trading accounts can all be operated in the AximTrade member area.