Index Trading

Trade global indices with tight spreads and low commissions on an ECN account with FXOpen.
Open an index trading account
with FXOpen

FXOpen: An index trading platform for the experts

Trading indices involves speculating on the performance of a group of stocks rather than one single asset. They provide a highly liquid market and trading hours are typically longer than for other markets. Some of the biggest global indices have distinguished histories.

The benefits of index trading with FXOpen

Peace of mind

One platform, multiple markets

When you choose us, you can use one platform for index trading in Hong Kong, as well as forex and forex index trading, shares, commodities (metals and energy only), and cryptocurrency* CFDs.

Make your money go further

Totally customisable

The platform can be tailored to your style and strategies, so you are in complete control of your index trading.

Ultra-fast execution

Access automated trading

You can download ready-made scripts or create a custom indicator or script based on your index trading strategy.

Your choice of trading strategy

Access anytime, anywhere

You can trade major world indices wherever and whenever you want via the desktop, web-based or mobile version of the MT4 trading platform. If you have an Apple Mac, the web-based version is particularly useful as a download is not available.

We want you to be a successful trader

You're trading with a FCA regulated broker

Index trading in Hong Kong is covered with us. Your funds are fully protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).

200+ markets offered

Access a wide range of analysis

With a quotes history centre, strategy tester, plus 50+ built-in indicators and graphic tools for technical analysis and global indices news, this platform has everything you need to learn about indices rules and boost your index trading knowledge.

What are indices in trading?

Indices are a method of measuring the performance of a group of stocks from one particular exchange. They offer an alternative option for traders who may be looking to gain a wider view of the market – one they may be unable to obtain by analysing the performance of shares in a single company.

Via index CFDs, you can speculate on the performance of indices without owning the underlying asset. Index trading means you can access entire sectors without having to take up multiple positions.

Index trading in Hong Kong: The risks and rewards

Every type of trading comes with risk attached. Investing in indices is no different. Before you begin, you must take the time to understand the markets and how their performance is sometimes affected by certain determining factors. Knowing this will help you make decisions with greater clarity.

Indices are highly liquid and offer more trading hours than most markets, so it’s possible to make profitable trades. However, that liquidity also means the markets can go against you. Having a strategy in place will enable you to minimise and cover any losses you do encounter.

Index trading with FXOpen

When you register for an index trading account with FXOpen you gain access to our cutting-edge platform. We’re fully regulated by the UK’s Financial Conduct Authority (FCA) and offer FSCS protection of £85,000 when you trade indices, meaning FXOpen HK is the perfect choice.

Additionally, our trading software means you can access multiple instruments, including forex, shares, commodities and cryptocurrency*, all from one account.

It’s easy to register. Simply fill in our form and go through the identification verification checks. So, why not get in touch or open an account and begin your index trading journey in Hong Kong today.

How are indices calculated?

Most indices are calculated based on the market capitalisation of the organisations that comprise that index. The larger cap firms have greater weight, so their performance will have more of an impact on the value of the index than the companies that have a lower market capitalisation.

However, some global indices are based on the price of a company’s shares. In this case, the performance of those businesses with a higher share price has a greater bearing on the index than those whose share prices are lower.

Examples of global indices

There are several major world indices available for you to trade. Here are some that are the most popular:

  • Wall Street 30 (Dow Jones Industrial Average): This tracks the performance of 30 of the biggest publicly traded firms in the United States.
  • Germany 40 (DAX): The DAX comprises the 40 largest companies on the Frankfurt Stock Exchange.
  • UK 100 (FTSE 100): The UK’s largest 100 firms, by market capital, as listed on the London Stock Exchange.
  • US Tech 100 (NASDAQ 100): Measures the performance of the 100 biggest non-financial companies in the United States. This is also referred to as the US Tech 100 due to its heavy focus on the technology sector.
  • Japan 225 (Nikkei 225): A price-weighted index covering 225 of Japan’s largest companies.

The main factors affecting index trading

As global indices cover a wider range of companies than individual assets, several factors can impact their performance and it’s good to be aware of these if you’re looking into index trading.

For example, commodity prices can have a huge bearing on exchanges like the FTSE 100, which has a significant proportion of commodity stocks. This can affect performance and success rates when index trading from Hong Kong or elsewhere.

Another factor to be aware of is change to a company’s structure. These changes can influence its market capitalisation or share price and subsequently impact the performance of that index.

Traders will also closely monitor companies’ financial results, as these can have a direct bearing on share prices. Economic and geopolitical developments are also likely to play a part in the performance of certain global indices as companies are impacted by major financial and political shifts.

How to define success in index trading

Successfully trading world indices is not easy by any stretch, but with detailed analysis, a clear strategy, and the ability to quickly weigh up the risks versus the rewards, you’ll give yourself a far greater chance of doing well in this arena.

Success can be a very individual thing, especially in the world of indices. Therefore, if you’re focusing on index trading, it’s important you define your goals and set out a plan that will help you reach them.

Make sure you manage your expectations and avoid making any emotional decisions as this is where you could find things veer off-course and don’t follow your plan. Use your in-depth research to guide you, utilise the platform that’s available to you at FXOpen, and create a strategy that allows for potential losses. By doing this, you will be able to start your index trading journey with increased confidence.

Open an index trading account
with FXOpen

*Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.