Stock indices are the most popular type of CFD trading. We have stock indices from around the world to choose from, including the Australian S&P 200, the UK FTSE 100, the US E-mini S&P 500 and the US DJIA.
The stock index is a good measure of market performance. Indices such as the FTSE 100 and the DJIA, which are composite indices of blue-chip stocks listed on exchanges, are often effective measures of current market sentiment. Any change in the price of a component of an index is reflected in the overall value of the index.
Stock indexes have the advantage of allowing traders to look at the performance of a basket of stocks as a whole rather than focusing on individual stocks. Both offer online trading of index CFDS and futures contracts on HT5.
(Spot) stock index point spread
The point spread of all our stock indexes is highly competitive, including the E-mini S&P 500 Index as low as 0.5 point, the FTSE 100 Index as low as 1 point, and the Xetra DAX Index from 1 point. The S&P 200 Index spread starts at 1.
Index futures
In addition to stock indexes, futures indexes are also offered: ICE Dollar Index and VIX Index.
Index of the instance
How is it determined that a client is entitled to dividends from the AUS 200 Index?
Based on the above example, we assume that the index AUS 200 ex-dividend date is on August 18, 2016. Therefore, the client must hold a position in the AUD 200 Index by August 18 and must retain the position until August 18, 2016 to guarantee a dividend adjustment of $2.44 per lot. To determine whether to book or deduct the dividend from the customer account, it depends on whether the customer is long or short AUS 200. If the client is long 1 lot of AUS 200, the client will be entitled to a dividend of $2.44 per lot. However, if it is short AUS 200, $2.44 per lot will be deducted from the customer's account. Before deductions, $2.44 per lot will be converted to the currency of the customer's account.
Since this is the index AUS 200, the dividend adjustment is AUD 2.44 per hand. If the index is the US 500, the dividend adjustment would be $2.44 per lot. The ex-dividend Excel sheet states that the index is expected to adjust its index points within a given week, and the actual ex-dividend adjustment for each index is regularly updated on our blog with ex-dividend adjustments.