Index Trading in the UAE
FXOpen: Index trading for the experts
Advantages of index trading in the UAE with FXOpen
Trade index CFDs at FXOpen with up to 1:20 leverage.
One platform with multiple instruments and markets
With us, you can use one platform for index trading in the UAE as well as for commodities (metals and energy only), forex, shares and cryptocurrency* CFDs.
You're trading with an FCA regulated broker
based in the UK and your funds are fully protected up to £85,000 by the FSCS.
Access to automated trading
You have the option to download and use ready-made scripts and expert advisors or create a custom indicator or script, based on your very own index trading strategy.
Access anytime, anywhere
via the desktop, web-based or mobile version of the MT4 and MT5 trading platforms.
Access to a wide range of analysis
50+ built-in indicators and graphic tools for technical analysis, quotes history centre, strategy tester and news, all designed to help you increase your index trading knowledge.
What are indices in trading?
Via index CFDs, you can speculate on the performance of indices without owning the underlying asset. Index trading means you can access entire sectors without having to take up multiple positions.
The risks and rewards of index trading
World indices are highly liquid and offer longer trading hours than most markets, so there is the potential to make profitable trades. But the flip side of that liquidity is that the markets can go against you. You need to adopt a strategy that will minimise and cover any losses.
Trading index CFDs is done on margin, so professional clients could end up losing more than their original outlay. For retail clients we offer negative balance protection, which negates the risk of losing more than the deposit. There are always risks when trading in global market indices, and although we will always execute your trades at the best possible price there can never be any guarantees of success.
Index trading in the UAE with FXOpen
All you need to do is fill in our simple form and go through the identification verification checks, so why not get in touch or open an account and begin your index trading journey today.
How are world indices calculated?
Most global indices are based on the market capitalisation of the companies that make up that index. The larger cap organisations have greater weight, so their performance will have a greater influence on the value of the index than those with a lower market capitalisation.
Then there are global market indices that are weighted by the price of a company’s shares. In that instance, the performance of organisations has a more significant impact on the index than those whose share prices are lower.
Examples of global market indices
There are a number of global indices available for you to trade. These five tend to be among the most popular:
- Wall Street 30 (Dow Jones Industrial Average): Tracks the performance of 30 of the biggest publicly traded firms in the United States.
- Germany 40 (DAX): Made up of the 40 largest companies on the Frankfurt Stock Exchange.
- UK 100 (FTSE 100): The UK’s largest 100 firms, by market capital, as listed on the London Stock Exchange.
- US Tech 100 (NASDAQ 100): Measures the performance of the 100 biggest non-financial companies in the United States. Also referred to as the US Tech 100 due to its heavy focus on the technology sector.
- Japan 225 (Nikkei 225): A price-weighted index covering 225 of Japan’s largest companies.
The factors that affect index trading
World indices cover a wider range of companies than when trading individual assets, so there are numerous factors that can have an effect on their performance. For example, the FTSE 100 has a high proportion of commodity stocks, so commodity prices can have a huge bearing on that particular index.
Changes to a company’s structure can also have an impact on its market capitalisation or share price, which may have a knock-on effect on the performance of the index.
Business’ financial results can have a direct bearing on their share prices, so traders will monitor those closely, while economic and geopolitical developments have also been known to impact certain global indices.
How to define success when index trading in the UAE
Mastering index trading is no easy feat but with careful analysis, a robust strategy and an ability to assess the risks and rewards, you’ll put yourself in a much stronger position.
It’s vital to identify your goals and form a plan that will help you achieve them. You should always attempt to manage your expectations and avoid making emotional or irrational decisions. Use your research to inform your choices and build a strategy that allows you to safeguard against any potential losses. That will enable you to tackle index trading in the UAE with greater confidence.
*Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.