Trading Indices
Traditionally, a stock market index measures of the value of different sectors of the stock market, in relation to each other. Typically it is calculated as a weighted average price of selected stocks. Financial managers and investors use indices as a frame of reference to understand the growth of different market sectors by comparison to their own strategy. Certain indices, like the S&P 500, have many versions. These groupings can change based on the weighting of the different components that are being measured.
Trading CFD Indices provides clients with exposure to all international equity markets, and is an extremely, effective hedging tool. MQF is well aware of the important role these instruments play in diversifying any portfolio. With all major indices available including; NASDAQ, DAX, FTSE, CAC clients can take advantage of global market sentiment with the benefits of leverage, fast execution, and optimal trading conditions.
Trading Indices with MQF
Daily Indices Analysis
Trade Indices with 1:100 Leverage
Fast Execution & Tightest Spreads
Multiple Platforms (Web, Desktop, Mobile)
Flexibility of trading fixed spread on Indices or variable ECN spread
Indices Trading Conditions
| 1 Lot= 1unit (at current market Bid/Ask) | Minimum Lot for trade 0.1 Lots = 0.1unit (at current market Bid.Ask) | Pip Value 1.0 Lot=$1 | Pip Size (Increment) 1.0 |
|---|
| Instrument | Spread |
ECN (Average Spread) |
Leverage | ECN Leverage | Lot Size | Min. Trade | ECN Min. Trade | Roll Sell | Roll Buy |
|---|---|---|---|---|---|---|---|---|---|
| AUS200 | 6 | 4 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -1.89 | -1.89 |
| CAC40 | 3 | 2 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.02 | -0.02 |
| COPPER | 3 | 2 | : 100 | : 100 | 1,000 Contract | 0 Lot | 0 Lot | -0.01 | -0.01 |
| DAX30 | 3 | 2 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.05 | -0.05 |
| FTSE100 | 3 | 2 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.44 | -0.44 |
| ITA40 | 30 | 17 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.09 | -0.09 |
| JPN225 | 22 | 15 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.18 | -0.18 |
| NGAS | 20 | 10 | : 100 | : 100 | 10,000 Contract | 0 Lot | 0 Lot | -0.01 | -0.01 |
| SPA35 | 12 | 8 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.04 | -0.05 |
| SUI30 | 5 | 4 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -3.6 | -3.6 |
| UKOIL | 6 | 5 | : 100 | : 100 | 100 Contract | 0 Lot | 0 Lot | 0.9185 | -5.784 |
| USA100 | 3 | 2 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.06 | -0.06 |
| USA30 | 4 | 3 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.23 | -0.23 |
| USA500 | 2 | 1 | : 100 | : 100 | 1 Contract | 1 Lot | 1 Lot | -0.03 | -0.03 |
| USOIL | 6 | 5 | : 100 | : 100 | 100 Contract | 0 Lot | 0 Lot | 0.89225 | -5.604 |
Indices Trading Examples
Now let’s see how some Indices positions look in the actual market. The most straightforward way is by going through the calculations involved.
Now let’s take 5 Lot CFD contracts of the S&P 500 bought at a market price of $1400. The USD value of the position will be: 5 Contracts X $1400= $7,000 With a margin requirement of 1% (1:100) the result will be $1400 required to open the position.
Let’s take a 0.5 Lot CFD contract in the NASDAQ bought at a market price of $2640. The USD value of the position will be: 0.5 X $2640= $1320 With a margin requirement of 1% (1:100) the result will be $13.20 required to open the position.
-It should be noted a client may choose to speculate in all stock markets, but margin requirements will be calculated by the base currency (USD, EURO,GBP) chosen for the account by the client.
* Please Note: As with currency pairing swaps, when commodity or indices positions are held by clients overnight there is a rate charged as follows from the 21st of May 2013.
Long: Index value * Number of CFDs * (relevant interbank rate + 2.5%) * (Actual Number of days/360 or Actual Number of days/365)
Short: Index value * Number of CFDs * (relevant interbank rate - 2%) * (Actual Number of days/360 or Actual Number of days/365)
There will be a commission levied against each CFD trade equivalent to 0.0065% of the the nominal trade value, subject to a minimum fee detailed as follows:
| Symbol | Fee |
|---|---|
| COPPER, NGAS, UKOIL, USOIL, USA30, USA100, USA500 | 1 USD |
| AUS200 | 1.50 AUD |
| CAC40, DAX30, ITA40, SPA35 | 1 EUR |
| SUI30 | 1 CHF |
| JPN225 | 140 JPY |
| FTSE100 | 1 GBP |
Some additional information regarding Precious Metal Rollover/Swaps
At MQF rollovers are dealt with on a "spot" basis only. Meaning that all positions are settled two business days from inception, as per market rules. MQF will not facilitate actual physical delivery of either precious metals/currency. As a result, all positions that are open from 23:59:45GMT to 23:59:59GMT (Server time) are rolled over to a new value date.
* The above illustrations are mere fictitious examples and are not to be construed in any way to constitute investment advice.
** The performance figures quoted are only estimates and may not be reliable indicator of future performance of this investment.
*** This information does not constitute an offer or solicitation and is provided for information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of MQF at the time of preparation. They are thus subject to change without notice. MQF believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by MQF and no liability in respect of any errors or omissions, including any third party liability, are accepted by MQF or any director, officer or employee.
