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Advantages of Trading Index CFDs

What is an Index CFD?

How to Trade Index CFDs

Let's take a look at an Index CFD trading example so you can see how leverage, margin and what happens when you close out for a profit or a loss.

1 Lot = 1 Contract | Position: Long | Leverage: 20:1

Open

Close

Close

Dow Jones (US30USD)

Bid 16,814.1/Ask 16,817.1

Proposed leverage is 20:1

Bid 16,824.1 / Ask 16,827.1

Closing Price @ $16,824.1

Bid 16,794.1 / Ask 16,797.1

Closing Price @ $16,794.1

Value per lot

1x16,817.1 = $16,817.1 USD

Value per lot

$16,824.1

Value per lot

$16,794.1

Margin per Lot

16,817.1/20 = $840.855 USD

P/L

16,824.1-16,817.1 = $7

P/L

Loss: 16,817.1-16,794.1 = $23

Open

Dow Jones (US30USD)

Bid 16,814.1/Ask 16,817.1

Proposed leverage is 20:1

Value per lot

1x16,817.1 = $16,817.1 USD

Margin per Lot

16,817.1/20 = $840.855 USD

Close

Bid 16,824.1 / Ask 16,827.1

Closing Price @ $16,824.1

Value per lot

$16,824.1

P/L

16,824.1-16,817.1 = $7

Close

Bid 16,794.1 / Ask 16,797.1

Closing Price @ $16,794.1

Value per lot

$16,794.1

P/L

Loss: 16,817.1-16,794.1 = $23

Why Trade with ACY Securities

ACY Securities, we are all about empowering clients. We understand what it takes to trade the markets and we arm our clients with premium grade trading conditions, tradable market analysis and customisable education so you can become the trader you aspire to be.

ASIC-Regulated

Headquartered In Sydney

Ultra-Low-Cost Trading

Spreads from 0.0 pips

Ultra-Fast Execution

Under 30ms

Multi-Asset CFD Provider

Stocks | FX | Commodities | Indices | ETFs

Tools of The Trade

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Deep Interbank Liquidity

From 16 tier one global banks

0.0 Pips

spreads from

1:30

Leverage

Under 30ms

ultra-fast execution

2,200+

Tradeable Instruments

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