Index Trading
with FXOpen
FXOpen: An index trading platform for the experts
The benefits of index trading with FXOpen
Trade indices
with leverage
Trade index CFDs at FXOpen with up to 1:20 leverage.
One platform,
multiple markets
When you choose us, you can use one platform for index trading in Hong Kong, as well as forex and forex index trading, shares, commodities (metals and energy only), and cryptocurrency* CFDs.
Access to automated trading
You can download ready-made scripts or create a custom indicator or script based on your index trading strategy.
Access anytime,
anywhere
You can trade major world indices wherever and whenever you want via the desktop, web-based or mobile version of the MT4 trading platform. If you have an Apple Mac, the web-based version is particularly useful as a download is not available.
You're trading with a FCA regulated broker
Index trading in Hong Kong is covered with us. Your funds are fully protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).
Access a wide range of analysis
With a quotes history centre, strategy tester, plus 50+ built-in indicators and graphic tools for technical analysis and global indices news, this platform has everything you need to learn about indices rules and boost 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.
Index trading in Hong Kong: The risks and rewards
Indices are highly liquid and offer more trading hours than most markets, so it’s possible to make profitable trades. However, that liquidity also means the markets can go against you. Having a strategy in place will enable you to minimise and cover any losses you do encounter.
Index trading with FXOpen
Additionally, our trading software means you can access multiple instruments, including forex, shares, commodities and cryptocurrency*, all from one account.
It’s easy to register. Simply fill in our form and go through the identification verification checks. So, why not get in touch or open an account and begin your index trading journey in Hong Kong today.
How are indices calculated?
Most indices are calculated based on the market capitalisation of the organisations that comprise that index. The larger cap firms have greater weight, so their performance will have more of an impact on the value of the index than the companies that have a lower market capitalisation.
However, some global indices are based on the price of a company’s shares. In this case, the performance of those businesses with a higher share price has a greater bearing on the index than those whose share prices are lower.
Examples of global indices
There are several major world indices available for you to trade. Here are some that are the most popular:
- Wall Street 30 (Dow Jones Industrial Average): This tracks the performance of 30 of the biggest publicly traded firms in the United States.
- Germany 40 (DAX): The DAX comprises 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. This is 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 main factors affecting index trading
As global indices cover a wider range of companies than individual assets, several factors can impact their performance and it’s good to be aware of these if you’re looking into index trading.
For example, commodity prices can have a huge bearing on exchanges like the FTSE 100, which has a significant proportion of commodity stocks. This can affect performance and success rates when index trading from Hong Kong or elsewhere.
Another factor to be aware of is change to a company’s structure. These changes can influence its market capitalisation or share price and subsequently impact the performance of that index.
Traders will also closely monitor companies’ financial results, as these can have a direct bearing on share prices. Economic and geopolitical developments are also likely to play a part in the performance of certain global indices as companies are impacted by major financial and political shifts.
How to define success in index trading
Successfully trading world indices is not easy by any stretch, but with detailed analysis, a clear strategy, and the ability to quickly weigh up the risks versus the rewards, you’ll give yourself a far greater chance of doing well in this arena.
Success can be a very individual thing, especially in the world of indices. Therefore, if you’re focusing on index trading, it’s important you define your goals and set out a plan that will help you reach them.
Make sure you manage your expectations and avoid making any emotional decisions as this is where you could find things veer off-course and don’t follow your plan. Use your in-depth research to guide you, utilise the platform that’s available to you at FXOpen, and create a strategy that allows for potential losses. By doing this, you will be able to start your index trading journey with increased confidence.
with FXOpen
*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.
