Index-tracking CFDs

Index-tracking CFDs

Trade an index with just one click

Stock market volatility can create interesting investment opportunities for the trader willing to take on a degree of uncertainty in search of higher profits. But imagine being able to benefit from a diversified investment tool that combined leverage, low costs and ease of trading – and allowed one to turn a profit in both rising and falling markets.

Leveraged market trading

Index-tracking CFDs give private traders and investors the capability of trading an entire index on real-time prices with just a single click. Clients are able to maximise their exposure with minimal investment using Index Trackers.

Benefits of index-tracking CFDs:

  • Index-tracking CFDs are linked to the performance of a stock market index. They can be short sold, opening up the possibility of turning a profit in a falling market
  • Maximum exposure with minimal capital requirements. Saxo Bank offers 2% margin on index-tracking CFDs up to the first EUR 300,000 of collateral
  • Trade 21 Index-tracking CFDs on 23 exchanges worldwide with a single click
  • Very competitive Bid/Ask spreads with no additional commissions.

Simple stock market investment

If an investor is bullish over the prospects of a particular market index, a tracker allows him to invest in it without having to invest in the underlying shares. As index-tracking CFDs don’t require the buying and selling of individual shares, they provide highly cost efficient market exposure.

Short sell Index-trackers for flexible trading

Just like ordinary CFDs, Index-tracking CFDs can be ‘sold short’– so if an individual believes a certain market index will fall, they can ‘sell’ it and potentially turn a profit. Because Index-tracking CFDs are linked to the performance of a stock index, investors can diversify investment risks across numerous stocks represented in the index. Index-tracking CFDs are the easiest way to gain exposure to global stock markets whether taking long or short positions.

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Risk Warning

Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

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