Can you trade CFDs on indices?

Unlike trading stocks directly, you can trade CFDs on indices throughout the day, offering more trading opportunities. Traders do not own the stocks listed within indices in which they open CFD positions. Although CFD indices trading is more diversified than trading stocks, the value of an index could still undergo highly volatile changes.

Can you go short an index CFD?

Borrowing the real stock and going short the individual shares can be cumbersome, while the process and cost for going short an index CFD is just the same as process for taking a long position. Index CFDs are typically traded using leverage, meaning the CFD only needs to commit a smaller initial deposit to initiate the trade, known as margin.

What are the alternatives to an index CFD?

The main alternatives to using an index CFD are buying all the individual shares in the index, trading index futures or investing in an index ETF. Index CFDs typically use the index futures contract as the underlying asset.