FP Markets Indices
In keeping with our strong belief in transparency FP Markets only offers competitive Index CFDs. Here at FP Markets we give our clients price feeds directly from these leading global futures markets. A list of our futures exchanges we provide are:
- Sydney Futures Exchange
- NYSE LIFFE
By giving our clients direct price feeds to these exchanges means access to tight spreads at a very low cost. You can trade popular index products such as FTSE 100, S&P 500, Dow Jones, NASDAQ, DAX and more from the one platform.
How Index CFDs Work
As explained, Index CFDs track a parcel of equities on any one exchange and their performance. As an example take the FTSE 100 CFD. In this case FP Markets’ prices quoted will match the underlying prices of EUREX. The FTSE 100 CFD contract tracks the performance of the top 100 blue chip stocks on the LSE. You could buy a contract if you thought the FTSE 100 would go up or you could sell it if you believe the market will go down. Each Point the index goes in your favour you gain £10 and each point the index goes against you the loss will be £10.
Buying FTSE 100
You decide that the FTSE 100 is going to rise over the next day or so based on your research. In this case to make a profit you have decided to buy 1 FTSE 100 contract. The FTSE 100 contract is the equivalent of £10 per index point.
The current quote for t FTSE 100 is 5300.5 – 5301.0. You wish to buy 1 contract at the offered Asking price of 5300.0.
Opening Position – 5300.0 x 10 = £53,000
The day the FTSE 100 has risen and the current quote is 5360.0 – 5360.5. The trader decides to sell their FTSE 100 contract at the bid price of 5360.0 to close out the long position.
Closing Position – 5360.0 x 10 = £53,600
Profit/Loss = £600
Make note that the standard commission on this would have been £10 to open the position and £10 to close the position. There are no financing implications associated with FP Markets’ Index products. Therefore net profits would have been £580.注册真实账户