Indices
Trade on over 80 cash and forward global indices based on the FTSE 100 and more, with leverage, on our award-winning spread, bet, and CFD platform. Enjoy tight spreads, lightning-fast execution, and the highest-rated customer service in the industry.
Indices
How do Indices work?
Our forex indices group together individual FX pairs with the same base currency to make a forex ‘basket’. The indices track the underlying prices of the currency pairs within that index. If the individual forex prices in that index increase, then the value of the index will go up. Conversely, if the individual FX prices decrease, then the value of that index will fall.
There are several benefits to forex indices trading as opposed to trading individual currencies. Firstly, it can be a more cost-effective and efficient way of trading the market, as it allows you to take a view of one area of the forex market, without having to open a position on each individual FX pair. Likewise, this can be a good way to diversify your portfolio, for example, while geopolitical issues could particularly affect one currency pair in the index, the others may remain unaffected. Forex indices trading can also be used to hedge any unfavorable moves in a particular currency, and are a good way to spread your risk, as you are exposed to a wider range of instruments rather than just one currency pair.
However, it's important to be aware that spread bets and CFDs are high-risk, speculative products. High volatility combined with leverage could lead to significant losses. As with any leveraged product, both profits and losses are magnified as they are based on the full value of your position, not just your initial deposit on a particular trade. While you could make a profit if the market moves in your favor, you could also make a loss if the trade moves against you, particularly if you don’t have adequate risk-management cover in place.