Indices
Indices are the most popular form of CFDs. 4Xhub offers a large range
of Indices from around the world to choose from, including the
Australia 200 Index, EU Stocks 50 Index, France 40 Index.
A stock index is a good indicative measure of market performance.
Indices such as the UK 100 Index and US SPX 500 Index are baskets of blue chip
stocks listed on the exchange and are generally a good measure of the
current market sentiment. A change in the performance of any
constituent stock in an index is reflected in a change in the overall
value of that index.
Indices have the advantage of allowing traders to take a wider view of
a basket of stocks rather than taking a view on one individual stock
alone. Online CFD and futures based indices are offered on our MT4
Platform.
Indices
Facts
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9 Indices to trade from
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Leverage up to 1:100
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Spreads as low as 0.5 pips
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Deep Liquidity
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MetaTrader 4
Indices Spreads
We offers competitive spreads across all of our cash Indices, including the US SPX 500 Index from 0.5 point, the UK 100 Index from 2 point, and Australia 200 Index from 0.7 point. * Subject to change based on market condition
How to determine if a client is entitled dividend from Index AUS200?
From the above example, let us assume that the ex-dividend date for
Index AUS200 is on the of 18th August 2016. Therefore, a client must
have an open position for Index AUS200 before the 18th of August 2016
and it must remain open until the 18th August 2016, in order to have
the dividend adjustment of $2.44 per lot. To determine if the dividend
adjustment is added or deducted to the client’s account, will depend
on whether it is a SELL or BUY on AUS200. If the client has 1 lot of
BUY for AUS200, the client will be entitled $2.44 per lot. However, if
it is a SELL of AUS200, the client will be deducted $2.44 per lot. The
amount $2.44 per lot will be converted to the client’s base currency,
before it is being deducted.
Since this is from index AUS200, the dividend adjustment will be
AUD$2.44 per lot. Alternatively, if the index is US500, the dividend
adjustment would be USD$2.44 per lot. RevoTrade EX- Dividends Excel
sheet shows the expected Indices that will have their index points
adjusted for the given week and the actual ex-dividend adjustment
amount for each indices will be updated regularly on our blog, Ex-
Dividends Adjustments.
Indices example
The gross profit on your trade is calculated as follows:
Opening Price
4,951
Closing Price
4,970
Difference
19
Gross Profit on Trade
19.00 points x 2 contracts ($2 per point) = AUD $38.00
Opening the Position
The price of the Australia 200 Index is 4,950.00/4,951.00. You are
of the view that blue-chip stocks are undervalued so you decide to
buy 2 contracts at 4,951.00. (One contract is equal to $1 per index
point). No commission is charged on Indices.
For every point that the bid quote on the Australia 200 Index rises
above 4,951.00 you will make a profit of $2 AUD, for every point the
bid quote falls below 4,951.00 you will lose $2 AUD.
Closing the Position
Four days later, the Australia 200 Index has risen to 4,970.00/4,971.00 and you decide to take your profit. You close your position by selling 2 contracts at 4,970.00.
Spread
Indices
SYMBOL |
DESCRIPTION |
MIN |
AVG |
|---|---|---|---|
| AUS200 | Australia 200 Index | 0.95 | 1.12 |
| STOXX50 | EU Stocks 50 Index | 1.5 | 1.85 |
| FR40 | France 40 Index | 1 | 1.2 |
| JP225 | Japan 225 Index | 6 | 8 |
| US500 | US SPX 500 Index | 0.6 | 0.6 |
| US100 | US Tech 100 Index | 2 | 2.2 |
| UK100 | UK 100 Index | 1 | 1 |
| DE40 | Germany 40 Index | 4.2 | 4.4 |
| ES35 | Spain 35 Index | 0.001 | 0.004 |
* Subject to change based on market condition |
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