What is an Index?
Stock market indices are a basket consisting of stocks of countries and show the general situation of the relevant stock market and thus the financial situation of the relevant country. By trading in stock market indices, in short, you are investing in the economy of the relevant country, which will get better or worse.
What are Index Investments?
Which Indices Can Be Invested In?
There is no fixed contract size, maturity etc. for CFD contracts. Therefore, each brokerage house can create its own CFDs or request the price provider to create them. In contracts for difference, the difference between the buy price and the sell price is your profit. For example, when you buy 100 Dow Jones CFDs, you are not physically contracted, but you are in the price action.
This is how it is calculated. Let’s assume that the investor bought 10 Dow Jones contracts at 10000 and sold at 10100. He will have a gain of (10100-10000)*10. Since the Dow Jones Index is priced in USD, the investor will earn 1,000 USD on this transaction.