Indices
Gain exposure to the basket of stocks making up the index in just one trade. The world’s most popular Indices are available to trade on the MT5 Global Markets Group trading platform.
Indices are the most popular form of CFDs. Global Markets Group has a large range of Indices from around the world to choose from, including the Australian S&P 200 Index, UK FTSE 100 Index, S&P 500 and US DJIA Index.
A stock index is a good indicative measure of market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue chip stocks listed on the exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index.
Indices have the advantage of allowing traders to take a wider view of a basket of stocks rather than taking a view on one individual stock alone. CFD instruments based on equity indices are offered the Global Markets Group Limited MetaTrader 5 Platform.
Indices
Facts-
11 Indices to trade from
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Up to 1:20 leverage
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Spreads from 1.0 point
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Deep Liquidity
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Commissions from $3.5
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MetaTrader 5
CFD Equity Indices Spreads
Global Markets Group offers competitive spreads across all of our cash Indices, including the E-mini S&P 500 Index from 0.5 points, the FTSE 100 Index from 1.0 point and the DAX40 Index from 1.0 point.
Indices example
The gross profit on your trade is calculated as follows:
Opening Price
7609
Closing Price
7655
Difference
46
Gross Profit on Trade
46.00 points x 10 lots (i.e 10gbp per point) = 460.00gbp
Opening the Position
The price of the FTSE100 Index is 7608.00/7609.00. You are of the view the FTSE100 Index is undervalued so you decide to buy 10 lots at 7609.00. Standard MT5 accounts do not have commissions on CFD’s.
For every point that the bid quote on the FTSE100 Index rises above 7609.00 you will make a profit of 10GBP, for every point the bid quote falls below 7609.00 you will lose 10GBP.
Closing the Position
Two days later, the FTSE100 Index has risen to 7655.0/7656.0 and you decide to take your profit. You close your position by selling your 10 lots at 7655.00.
How to determine if a client is entitled dividend from the FTSE100 Index?
Global Markets Group Limited pays ex-dividends on Index CFD’s. From the above example, let us assume that the ex-dividend date for FTSE100 Index is on the of 18th August 2023. Therefore, a client must have an open position for the FTSE100 before the 18th of August 2023 and it must remain open until the 18th August 2023, in order to have a dividend adjustment of GBP2.44 per lot. To determine if the dividend adjustment is added or deducted to the client’s account, will depend on whether it is a SELL or BUY on the FTSE100. If the client has 1 lot of BUY for FTSE100, the client will be entitled GBP2.44 per lot. However, if it is a SELL of FTSE100, the client will be deducted €2.44 per lot. The amount GBP2.44 per lot will be converted to the client’s base currency, before it is being deducted.
Alternatively, if the index is US500, the dividend adjustment would be a different value. Global Markets Group Limited ex-dividends Excel sheet shows the expected Indices that will have their index points adjusted for the given week and the actual ex-dividend adjustment amount for each index can be forwarded on request by emailing us info@gmgmarkets.co.uk, or calling us on +44 203 865 3306.