Trading Financial Indices
If an investor is bullish over the prospects of a particular market index, a tracker allows him to invest in it without having to invest in the underlying shares. As index-tracking CFD trading does not require traders to engage in the buying and selling of individual shares, they represent a cost effective solution to market exposure.
Short selling indices
As with regular CFD trading, Index-tracking CFDs can be ‘sold short’. If an individual believes a certain market index will fall, they can ‘sell’ and realise a profit. Because Index-tracking CFDs are linked to the performance of a stock index, investors can diversify investment risks across numerous stocks represented in the index. Index-tracking CFD trading is the easiest way to gain exposure to global stock markets, whether taking long or short positions.