Index CFD’s work precisely the same way as regular CFDs, except they only allow the trader to trade on indices instead of individual shares/stocks.
Even though indices have a certain degree of protection from individual company-related news, this does not mean that you will never suffer any losses. This is simply because indices comprise hundreds of companies, and parts of indices can still be affected by external events such as emerging markets or commodity prices.
Benefits of index CFD trading
This type of trade offers several benefits to both traders and the companies that provide the underlying assets for these trades.
Individual and multiple shares
One of the main advantages of index CFD trading is that investors don’t need to purchase multiple shares to gain exposure to stocks or other assets. With this type of trade, an investor can potentially benefit from growth in stock prices without actually needing …