Why trade indices with Tradu

Index Trading for Diversified Investment Opportunities

Trading indices offers you access to entire sectors, exchanges and national economies. It means you can take up positions without having to trade individual stocks – a method that can lower your risk exposure. Open your account and start index trading today.

Why Choose Tradu for Trading Indices?

Fractional trade sizes

Control and scale your positions with small contract sizes. Micro-contracts give you the flexibility to risk less per trade. You can also trade in fractions of a lot.

Intelligent tools

Use our suite of intelligent tools to assess sentiment in the market, along with the inbuilt Economic Calendar so you’re aware of major economic news that may affect the indices.

Powerful platform

With an average execution speed of just 17 milliseconds¹ , you’ll experience minimal slippage.

Zero commission²

When using leverage to trade indices.

Expert support

Our staff are available 24 hours a day, five days a week and can service 20+ languages.

Trade the world's major indices, all from one platform.

Trade a Variety of Indices in the Index Market

The benefits of index trading
Things to consider when trading indices

The benefits of index trading

There are plenty of potential advantages of trading indices, such as:

The ability to open positions in entire sectors or exchanges without having to trade the individual stocks separately.
Exposure to industries, sectors or regions can increase the diversification of your portfolio.
Trading indices means you are less susceptible to the volatility of individual stocks, which can reduce risk.
You can trade an index on leverage, which enables you to take up the full position with a fraction of the deposit.

Things to consider when trading indices

There are always risks involved with trading, and indices are no different. Some of these include:

Trading indices on leverage can be an advantage, but if the markets move against you then it will mean your losses are multiplied.
The composition of an index is typically decided by a committee, which means the assets you trade are not wholly within your control.
Lower volatility can reduce your exposure to risk, but it can also make for limited returns.

Frequently asked questions

What is an index CFD?

An index CFD is a financial derivative that allows traders to speculate on the price movements of a stock market index without having to own the underlying shares or futures contract.

Do index positions expire?

Index CFDs at Tradu utilise the current underlying futures rate and apply a fair value calculation to create an indicative spot price. Therefore, they do not expire and will remain open indefinitely if sufficient margin is maintained.

How much leverage is available on indices?

Tradu offers up to 1:400 leverage on indices. Learn more

Can I short CFDs?

Yes. You can go long or short with a simple click of a button, and speculate on both the rise and fall of a CFD.

What drives index prices?

When trading indices, it’s critical to understand the factors that can influence fluctuations in performance so that you can shape your strategy accordingly. These can vary depending on the indices you’re trading, but they can include:

Constituent performance: Share price movements of the individual holdings – especially those with a larger weighting – can impact the index.
Industry trends: Major developments – for example, a technological breakthrough or legislation reform – can affect indices, especially those which are sector-based.
News events: The likes of a global recession or a pandemic, such as the Covid-19 outbreak, are likely to have a significant impact on the performance of indices.
Composition changes: When new holdings are added, an index’s price will typically experience a rise as mutual funds invest in the new constituent.

What are some index trading strategies?

When trading an index or multiple indices, you need to adopt an approach that suits your level of knowledge and fits in with your schedule. Examples of popular strategies include:

Support and resistance trading: Making trades within a certain range, which is defined by the levels that an index's price typically doesn't fall below or rise above.
Breakout trading: Identifying those indices that have the potential to defy the support and resistance levels.
Trend trading: Analysing recent or longer-term price movements to establish patterns from which you can base your decisions.

Find out more in our in-depth guide to index trading strategies.

What are the index trading hours?

These will vary by index. For example, the hours for exchange-based indices are likely to mirror the hours of their underlying exchanges. Country or region-based indices will be more commonly traded in line with the standard working days in those locations.

Disclosure

¹ Based on Jan-Sep 2025 Stratos Group data and applies to CFD products.

² Other costs may apply. Tradu can be compensated in several ways, please see our Rate card.