CFDs on Indices

A Contract for Difference (CFD) is a contract made between a buyer and a seller for a specified product, where one party agrees to pay the other the price difference between the opening and the closing price of the contract.

CFD trading offers investors access to the financial markets, without buying physical/underlying products. Instead, they purchase contracts speculating on future price actions.

What is a CFD?

CFD stands for ‘Contract for Difference’, which is an arrangement made between two parties, the buyer and the seller, over the price movement of a specific financial product. Essentially, the seller has to pay the buyer the difference between the present value of an asset and its value at the time the contract was made.

Trading CFDs on Indices

With MSMAX, you can trade CFDs on some of the most prominent securities in the U.S., Europe, Australia and Asia. These include, but are not limited to:

  • GDAX (Dax 30)
  • AUS200 (Australia 200)
  • ND100m (US Tech 100 - Mini)
  • UK100 (UK 100)
  • SP500m (US SPX 500 - Mini)
Leverage

CFDs are popular with traders because they offer a low-cost entry into the financial markets. Leverage means that traders only need to invest a fraction of the total cost of the contract themselves, enabling them to potentially generate a greater return. However, leverage cuts both ways, and has the same potential to increase losses, as it does to maximise profits.

Low Costs

Trading CFDs on Indices is more costly than trading the underlying index, while offering equal potential to deliver gains. If a trader has a CFD on a long position and the index appreciates, they could even make a greater profit than an investor holding the physical stock. Similarly, they could also make a greater loss if the price declines.

MSMAX gives you the keys to access the forex market 24 hours a day, 5 days a week, allowing you to trade the most popular major, minor and exotic currency pairs. With approximately $5 trillion exchanged every single day, the forex market is the most liquid market in the world. Read More
Trade precious metals (gold and silver) directly with MSMAX as an alternative investment option for diversifying your portfolio. As potential safe haven assets, precious metals are popular amongst traders during times of uncertainty and volatility in the markets. Read More
Thanks to a real-time feed straight from two of the biggest stock exchanges in the world – NASDAQ and NYSE – you gain access to the stock market and the shares of some of your favourite companies. Since you’re speculating on price movements, you’re not subject to ownership of the underlying asset. Read More
Get the competitive edge with quick access to the commodities markets. As a great way to diversify your portfolio, you can choose from popular gas and oil products – and trade on their price movements. Read More
Access the international markets and get an overview of an entire market sector by trading CFDs on indices. MSMAX offers you a choice of popular indices from all over the world, including Germany, Australia, the UK and more than a few from the US. Read More