Index-tracking CFDs

Index-tracking CFD trading from Saxo Bank allow for the realisation of profits in both rising and falling markets.

Trade an index with just one click

Stock market volatility can create investment opportunities for the risk averse trader searching for financial portfolio profits.  Index Tracking CFD trading allow traders to benefit from a diversifed investment tool which combines leverage, low costs and ease of trading. CFD trading allows traders to recognise profits in both rising and falling markets.

Leveraged CFD trading

Index-tracking CFDs offer clients the opportunity to engage in CFD trading against an entire index on real-time prices with just a single click. Clients are able to maximise their exposure with minimal investment using Index Trackers.

Benefits of index-tracking CFDs:

  • Index-tracking CFDs are linked to the performance of a stock market index. They can be short sold, creating the possibility of generating a profit even in a falling market
  • Maximum exposure with minimal capital requirements. Saxo Bank offers Double Leverage on all Index-tracking CFDs, reducing collateral requirements by half (up to the first EUR 50,000 (or equivalent) of collateral)
  • Access to over 16 Index-tracking CFD trading opportunities across more than 23 exchanges worldwide; all with a single click
  • Competitive Bid/Ask spreads with no additional commissions

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.

Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.  Ensure you fully understand the risks involved and seek independent advice if necessary.

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