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Stock index CFDs are financial instruments that represent the value of index groupings of publicly traded companies. CFDs index trading provides you with a wide range of investment opportunities. You can trade CFDs on rising markets as well as on falling markets.


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Indices CFDs

The CAC 40 (Cotation Assistée en Continu) is a French stock market index which presents the capitalization-weighted TOP-40 from 100 market caps with the highest position on the Euronext (Paris). It is one of the main national indices of the Euronext stock exchange, while others are: Brussels' BEL20, Lisbon's PSI-20 and Amsterdam's AEX.

Composition of stocks according to the CAC 40 index is released quarterly by the Index Steering Committee. Possible changes are revealed after two weeks from the meeting date. The rank of companies presented through the CAC 40 is based on free float market capitalization as well as share turnover for the past 12 months. Criteria of companies appointment are based on "a relevant benchmark for portfolio management" and "a suitable underlying asset for derivatives products". If a participant has more than one type of shares, only the most actively traded asset is used for representation, normally, the ordinary share.

An amount of issued stocks of a company is published quarterly on the third Friday of March, June, September and December. The index uses a specific capping for companies weighted (15%) since 2003, and the capping factor is revealed once a year on the third Friday of September by the Index Steering Committee.

A major part of companies revealed by the CAC 40 are French-domiciled, but up to 45% of them often have foreign investments. The most part of investors is from Germany, Japan, U.S. and Great Britain. Since the CAC 40 is one of the most international indices among the other European indicators, companies are often multinational. One-third of companies’ workforce usually came from the outside of France.

The CAC 40 is used as an index for funds investing in the French stock market. It also reveals general overview of the direction of the Euronext-Paris. It is treated similar to the Dow Jones Industrial Average and serves as the main indicator of French stock market level and direction. It is vital to note that the list of companies can be changed quarterly.

FTSE China A50 Index (previously FTSE–Xinhua China A50 Index) is a stock market index of the FTSE Group, which was known as FTSE–Xinhua joint venture until 2010. All components of the index are formed from the Shanghai Stock Exchange and Shenzhen Stock Exchange A-shares list, but excluding the share for foreigners (or B-shares).

The same identical indices are CSI 300 and CSI 100 Indices of the China Securities Index Company and Dow Jones China 88 Index of the S&P Dow Jones Indices. Exclusive indices of the mentioned exchanges are the SSE 50 Index (Shanghai Stock Exchange TOP-50), SZSE 100 Index (Shenzhen Stock Exchange).

The China A50 CFD Index is used as a benchmark for companies located in the Chinese mainland, and acts as a participant on China domestic market. The index is real-time, it incorporates 50 major A-shares companies graded by the full market capitalization (from both Shanghai and Shenzhen stock exchanges). The index is also free tradable and provides representativeness for the stated market as well.

The FTSE group indices present more than 7,400 securities from 47 countries, including China A50 Index and London FTSE 100. The index is reviewed in March, June, September and December (quarterly). The index release is usually supported by the set of news which can be interesting for U.S. traders.

The economy of China has been having a constant growth for 15 years to the second largest economy in the world. It is influenced by global events and influences them itself, along with the major markets. The economy of China is now focused on Asia and its major markets. The China A50 index often moves basing on its own unique set of influence factors. Comparing with the world major indices such as the S&P 500, DAX, or FTSE it has a different depth of liquidity and volatility. It is not influenced by the Nikkei 225 either. Chinese companies make their business in four regions and more than 150 countries. Today they continue their development.

The DAX, or Deutscher Aktienindex (German stock index) incorporates the TOP-30 blue chips companies whose shares are available for trading on the Frankfurt Stock Exchange. The prices, which are used to calculate the index, are taken from the Xetra trading venue. The operator of Xetra (Deutsche Börse) uses the DAX to measure performance of the Prime Standard’s 30 largest German companies by market capitalization and order book volume. The index is treated as an equivalent of the Dow Jones Industrial Average and FT 30, but it evidently does not present general economy situations due to its small size.

After the Xetra trading venue closes as a trading floor component, the German benchmark DAX index is presented by the L-DAX Index, which uses the Börse Frankfurt trading venue (Frankfurt stock exchange) as a trading floor. There are also additional indices which represent the DAX Futures and late/early trading.

The DAX index is started from the 30 of December in 1987, and the base value of the index was 1,000. The Xetra calculates the index every 1 second. Futures prices influence the DAX, and it is updated for the next day even after the main stock exchange closes. The index changes are reviewed regularly, the member companies can be removed if they are excluded from the TOP-45 largest companies, and added if they enter the TOP-25.

The biggest part of the Frankfurt Exchange stocks are traded with the Xetra all-electronic system. The index is calculated using a free-float methodology and the measure of an average trading volume. The DAX 30 includes TOP-30 of the largest companies, and they are the most liquid German companies which are traded on the Frankfurt Exchange. The companies traded on this exchange present more than 80 different countries, and a lot of market participants, including companies themselves, are based outside of the country. As a result, the index is vulnerable to the global market events.

The DAX 30 companies, in most cases, are also traded in the U.S. The European indicator can provide an additional information for the U.S. market trends as well, especially because of the European trade closing time.

The U.S. Dollar is the most used currency in international transactions. It also serves as an official currency worldwide including the U.S. The U.S. Dollar is considered as a reserve currency. It is a standard unit for many commodities in the global market (including gold and oil).

The U.S. dollar index (USDX, DXY) is a measure of the value of the U.S. dollar comparing with a market basket of currencies of US trading partners. It is an equivalent of the trade-weighted index and uses exchange rates of other currencies. For now, the currencies which are used in the index compared to the dollar are: the Euro, Japanese yen, Canadian dollar, British pound, Swedish krona and Swiss franc.

The euro has a major weight when compared to other currencies. It reaches 58% of the weight, while the yen has only 14%. The USDX was started in 1973 with the basic value of 100. Today the position is intensively fluctuating.

Futures on the U.S. dollar index provide a possibility to operate value changes between the dollar and other currencies by one transaction, and to hedge their assets against risks related to the price changes. The mentioned index is traded on the ICE during 21 hours of trading time.

Currencies rates are usually defined by one base currency quoted in connection with a different currency. The DXY presents the calculated rating against six currencies. All these currencies have a floating level according to the monetary policies of emitting banks. The U.S. monetary policy is defined by Federal Open Market Committee (FOMC) of the Federal Reserve. The main influential factor for the U.S. dollar is the Fed interest rates which can directly affect the position of the DXY. Other currencies are affected by their bank policy as it creates the fluctuation of the index position. It can be used by traders as an economical indicator or a trading opportunity in the matter of futures trade.

The Dow Jones Industrial Average (DJIA, the Dow 30 or just “Dow”) is a stock market index, which was created by Dow Jones & Company co-founder and Wall Street Journal editor Charles Dow. The index was started in May 26, 1896. It was owned by S&P Dow Jones Indices, the subsidiary of S&P Global. The index is one of the most notable from the Dow Average indices that was started in February 16, 1885 with the non-industrial index.

The name of the index consists of founder's name and the name of his business partner, Edward Jones. The Dow Jones Industrial Average indicates 30 large publicly owned companies which are traded through the standard trading session in the stock market. The index is treated as the second oldest index in the U.S. market, while the first is Dow Jones Transportation Average. Its name includes the word “Industrial”, but main components of the DJIA can be far away from the heavy industry segment.

The rating of the Dow Jones Industrial Average is price-weighted and is a scaled average to compensate the stock splits effects. However, the value of the index is not actually the average of companies stocks prices. The sum of components are divided by the parameter based on the components’ stock split or stock dividend. This operation generates the consistent index rating. The divisor now is less than one, and this situation explains why the index is larger than the sum of stocks prices.

The index usually indicates the performance of the industrial sector in the U.S. economy, but it is also influenced by other events and economic reports outside the sector. Influence factors include domestic and foreign political events or some occurrences (such as terrorist attacks, war, or natural disasters). Since all the factors can have a harmful effect on the economy, the Dow Jones Industrial Average can react on them. The Dow Futures are mostly based on the mentioned index movement and is traded in connection with its position fluctuation.

The Financial Times Stock Exchange 100 Index (FTSE 100, FTSE, or the "Footsie") incorporates shares indices of 100 companies from the London Stock Exchange, basing on their market capitalization. In general, the index serves as an indicator of prosperity for the companies which are operated under the U.K. company laws. The index is managed by the FTSE Group which is also a subsidiary of the London Stock Exchange Group. The group is created by the Financial Times and the London Stock Exchange joint venture efford. The index is calculated in real time and is revealed every second after the market opens and trade time is started.

The FTSE 100 components are the 100 largest UK companies chosen by the full market value criteria. Since a lot of them are international, the index alone cannot serve as an indicator of the U.K. economy situation. Some analysts propose the FTSE 250 as a better indicator, since the part of the international companies in it is relatively small. The companies which form the FTSE 100 index are determined once in a quarter, on Wednesday after the first Friday of a month (March, June, September and December respectively).

The companies, which participate in the FTSE 100, present more than 81% of the general market capitalization of the London Stock Exchange. To have more comprehensive indicator, the FTSE All-Share Index is more applicable, but the FTSE 100 has more wide use among analysts.

The requirements, which are set to companies by the FTSE Group, include a full listing on the London Stock Exchange. The price on the Stock Exchange Electronic Trading Service is denominated in the euro or sterling. Companies also have to meet a specific condition about liquidity, free float and nationality.

Share prices used in the FTSE indices are weighted by the market capitalisation. It brings a notable difference between small and big companies. The free-float factor represents company’s shares which are available for trading (in percents, rounded to the nearest 5%). The free-float capitalisation requirement does not include restricted stocks (owned by insiders of the company).

The Hang Seng Index (HSI) is used as a benchmark in Hong Kong’s stock market. It is one of the most widely known indices in Asian markets. It serves as a performance indicator for fund managers. The HSI is a market capitalisation-weighted index, it has shares outstanding multiplied by stock price as a definition. The stock market value is directly proportional to the stock performance inside of the index. The stock with high capitalization in the market will affect the index performance much better than stocks with low market capitalization.

The HSI index also contains subsequent indices divided by several segments: Commerce and Industry, Finance, Properties and Utilities.

The Hang Seng Index Futures were first introduced in May 1986 by the Hong Kong Futures Exchange (HKFE) as a reaction to rising interest to the Hong Kong stock market and the urgent demand for hedging trading instruments. These futures, as well as HSI options, provide effective instruments for traders to operate all trade risks and take opportunities. Participation of foreign and domestic investors in futures and options operations increase the popularity of the Hang Seng Index futures instrument.

The HSI futures are available as a trading tool both for beginners and for experienced market players. They all can participate in the performance of the stocks which are incorporated in the index through the market trade. There are no trading limits for foreign investors, and they also have a possibility to manipulate trade risks through the HSI futures, which serve as a Hong Kong equity market benchmark.

The HSI futures have some qualities that define them as a very effective trading instrument. They provide a low-transaction cost due to the total value of high-capitalisation stocks represented in the HSI. The HSI Futures are registered and cleared by the HKFE Clearing Corporation which also provides guaranties on the futures to all HKFE trades through its facilities. The HKCC acts as a subsidiary of the HKFE and a fully owned subsidiary of Hong Kong Exchanges.

The FTSE MIB index, which was previously defined as S&P/MIB (before 2009), is an index for Borsa Italiana, Italian national stock exchange. The FTSE MIB (abbreviated from Milano Italia Borsa) incorporates the TOP-40 most traded shares in the exchange market. The index is administered by FTSE Group, while the administrator is owned by London Stock Exchange Group.

Borsa Italiana manages the Italian stock market, market players are represented by more than 130 brokers (domestic and international). The system works through completely electronic trading with a real-time trade execution. The Italian Derivatives Market, which uses the FTSE MIB index futures among other equity derivatives, was started in 1994. Today it is fully managed by Borsa Italiana and cleared by the specific clearing company, also owned by FTSE Group.

FTSE (Financial Times Stock Exchange) Group is a stock market indices provider from the U.K. It also provides related data services. FTSE Group is owned by London Stock Exchange (LSE). FTSE Group also manages the UK FTSE 100 Index as well as some other indices. The Group was created in 1995.

For now, FTSE Group manages more than 250,000 indices from 80 countries. In 2015 the organisation was placed third as a global indices provider.

The FTSE MIB serves as a primary benchmark indicator for the Italian equity market. Constituting companies form approximately 80% of the country market capitalisation. There are highly liquid businesses and leaders of the industry among them. This index defines the performance of 40 Italian equities, incorporated by criteria of size and liquidity. This index is market cap-weighted, and the number of constituting companies is not fixed.

The companies, whose shares become constituents of the index, undergo a formal review once every three months. If the FTSE Italia Index Policy Committee comes to conclusion that the companies list does not present the Italian market at best, it will commit suitable changes. The FTSE MIB Index is calculated in real-time and uses the euro as a basic currency.

Nikkei 225 futures denominated in the USD provide an access to the Japanese equity market and give an opportunity to trade by using the U.S. dollars. The Nikkei 225 Index is one of the major Japanese stock indices, it incorporates the TOP-225 blue-chip companies on the Tokyo Stock Exchange.

The Nikkei 225 Stock Average is one of the oldest indicators of the market in Japan, it was started in 1949. The companies, which constitute the index, are presented in the First Section of the Tokyo Stock Exchange (TSE), and the list includes the companies like Honda or Sony. The index is price-weighted: the higher the price of the stock, the more impact on the index the company price has. This way of calculation differs the Nikkei 225 Index from other widely used indices, which are calculated by using the market capitalisation.

The Nikkei 225 is reviewed annually in September and the changes are incorporated in October. The CME Group conducted the licensing agreement, and now it offers both types of Nikkei Futures - denominated in the U.S. dollar and Japanese yen. The Nikkei 225 Stock Average gives traders an access to the equity market of Japan. It provides the option to denominate futures as well as preferable sizes (Standard and E-mini). It also makes the instruments globally available through the highly-reliable CME Globex electronic trading system. The CME Clearing ensures the secure operation.

It is important to note, that the Japanese market is highly affected by U.S. economic events due to very strong ties between the markets of both countries. As a result, the Nikkei 225 Index is affected by U.S. economic reports, such as Non-Farm Payroll Report (which also affects the Dow Jones), the report on the U.S. GDP, the information about retails. All mentioned reports reveal the U.S. economy status, and Japan is one of the main U.S. partners. The economic growth or lowering have an influence on import relationships between the countries and sale rates, and the gain or lose are often observed in both mentioned indices (the Nikkei 225 and Dow Jones).

The Nikkei 225 futures, denominated in JPY, provide an access to the Japanese equity market and give an opportunity to trade by using the Japanese yen. The Nikkei 225 Index is one of the major Japanese stock indices, which incorporates the TOP-225 blue-chip companies in the Tokyo Stock Exchange.

The Nikkei 225 Stock Average is one of the oldest indicators of the market in Japan, it was started in 1949. The companies, which constitute the index, are presented in the First Section of the Tokyo Stock Exchange (TSE), and the list includes the companies like Honda or Sony. The index is price-weighted: the higher the price of the stock, the more impact on the index the company price has. This way of calculation differs the Nikkei 225 Index from other widely used indices, which are calculated by using the market capitalisation.

The Nikkei 225 is reviewed annually in September and the changes are incorporated in October. The CME Group conducted the licensing agreement, and now it offers both types of Nikkei Futures - denominated in the U.S. dollar and Japanese yen. The Nikkei 225 Stock Average gives traders an access to the equity market of Japan. It provides the option to denominate futures as well as preferable sizes (Standard and E-mini). It also makes the instruments globally available through the highly-reliable CME Globex electronic trading system. The CME Clearing ensures the secure operation.

It is important to note, that the Japanese market is highly affected by U.S. economic events due to very strong ties between the markets of both countries. As a result, the Nikkei 225 Index is affected by U.S. economic reports, such as Non-Farm Payroll Report (which also affects the Dow Jones), the report on the U.S. GDP, the information about retails. All mentioned reports reveal the U.S. economy status, and Japan is one of the main U.S. partners. The economic growth or lowering have an influence on import relationships between the countries and sale rates, and the gain or lose are often observed in both mentioned indices (the Nikkei 225 and Dow Jones).

The NASDAQ 100 index incorporates 100 U.S. companies which are the largest and had the most of the trading volume in the Nasdaq stock exchange. The Index list is not restricted by one industry, but it includes representatives from many industries, apart from financial service providers banks, financial sector organisations and investment companies. The Nasdaq 100 index can be operated by individual investors through the exchange-traded funds (ETFs).

The NASDAQ 100 Index is a capitalization-weighted index, whose constituting shares are weighted by the market value of their outstanding shares. The index was first used in 1985. The number of companies listed in the Nasdaq 100 is actually 107, and its nature limits the influence of larger components on the index.

Financial futures on the NASDAQ provide investors an opportunity to speculate on the future value or to hedge the price on many constituting components of the index. There are some futures that differ from the NASDAQ Composite Index, such as E-mini NASDAQ composite futures, the E-mini NASDAQ biology futures, and the NASDAQ-100 futures (and the correspondent NASDAQ-100 futures). The NASDAQ futures are traded on the Chicago Mercantile Exchange (CME) which also provides the clearing service and the Globex platform to commit the electronic trading operations.

The NASDAQ futures trading creates specific opportunities for traders. They are one of the most liquid and actively traded tools in the market, while the mini types of futures allow traders to enter the market with a lower cost (they are affordable). They also offer transparency of the trade since futures are standard contracts and a major part of their regulations and conditions is defined by the exchange.

The traders who use a hedging strategy or hedge funds can use futures for their benefit, including the NASDAQ 100 futures. They can hedge the stock position while owning a large variety of shares of the technological segment of companies, so even the fall can be fully or partially refunded. A speculative use of the NASDAQ 100 futures is also possible since these futures can be used as any other futures.

The S&P 500 futures give traders an opportunity to manage the capital by investing it into the U.S. stock market major companies. The S&P 500 Futures index is based on the Standard & Poor’s 500 stock index, which consists of 500 individual shares presenting the market capitalizations of the large-cap U.S. equities.

The Standard & Poor's 500 (abbreviated as the S&P 500, or the S&P) is a U.S. stock market index based on the market capitalizations of 500 large companies. They have their stocks listed in the NYSE or NASDAQ. Components of this index are determined by their weightings according to the S&P Dow Jones Indices. The way the components are determined differs from the one which is used in other U.S. stock market indices (like Dow Jones Industrial Average or the Nasdaq Composite Index). Traders usually treat the S&P 500 as the best representation of the U.S. stock market performance and trends as well as the U.S. economy in general, while the The National Bureau of Economic Research defines common stocks as leading indicator.

The Chicago Mercantile Exchange provides two types of contracts for S&P 500. A “big contract” was started by the exchange in 1982. The price calculation was organised by multiplying the S&P 500 rating by 500$.

The S&P 500 futures are also traded as “e-mini” type. This are stock market index futures traded on the Globex platform under the regulations of the Chicago Mercantile Exchange. Their contract nominal is 50 times bigger than the the S&P 500 stock index value. They are also one-fifth size of a standard S&P 500 future contract. E-mini instruments incorporate a high liquidity and affordability for individual investors.

The main benefit of the S&P 500 futures trade is that the contract, in fact, represents the investment in 500 different stocks. This investment allows traders to diversify all risks. On the other hand, fluctuation of the S&P 500 makes it hard to hedge a major part of other equities.

The EURO STOXX 50 is a stock index of European companies stocks defined by STOXX (the index provider with ownership of Deutsche Börse Group). STOXX makes an effort to provide the indicator of leading Supersector companies in the Eurozone. The index includes 50 most liquid shares of the largest companies, and its futures and options based on the index are also the most liquid in Europe and in the global trade.

The 40 largest stocks form a basic list of companies, and they are chosen automatically. Places from 41 to 50 are filled with others, after grandfathered index components were placed by priority on the rating. The final number of 50 shares is formed annually, and companies weighting is updated quarterly according to the market caps changes.

The EURO STOXX 50 has the methodology and composition method, which are very close to Dow Jones STOXX 50, with one exclusion - the companies have to be fully transitioned to the euro. Because of this criteria, some major companies from the U.K. were excluded from the index list even though they have a huge international trade amount in London Stock Exchange.

The EURO STOXX 50 was first introduced on February 26, 1998. Today it uses several currencies for its denomination, including EUR, USD, CAD, GBP, JPY as well as parameters combination (Price/Net Return/Gross Return). The index is calculated every 15 seconds and time periods are defined depending on the return and currency variants.

The index incorporates more than 60% of the free-float market capitalization of the EURO STOXX Total Market Index. It is formed by 19 regional Supersector indices and presents the biggest Supersector in the matter of the free-float market capitalization in the Eurozone. The EURO STOXX 50 is also used as a fundamental indicator for single sub-indices basing on sub-sectors. It is also an indicator for many financial instruments and benchmarks. It is used for strategy indices, such as EURO STOXX 50 Risk Control Indices, and also can be defined as one of the most liquid indices in the Eurozone.

The Chicago Board Options Exchange (CBOE) Volatility Index has the ticker symbol VIX. It defines the market's expectation about volatility for 30 days. The index combines the volatility of the numerous S&P 500 index options and is often used to measure possible upcoming risks in the market.

The CBOE created the VIX as a basis for several volatility indicators, including a separate indicator for the NASDAQ 100 (VXN) and for Dow Jones Industrial Average (VXD). The index was started in 1993 as the first successful market volatility indicator. At first it was used as a weighted description of the eight S&P 100, in 2004 it was expanded to the wide range. The VIX rating of 30 usually indicates a high volatility, in most cases it reflects the fear or investors’ uncertainty. The rating of the index below 20 describes the market in less stressful conditions.

In general, the VIX is quoted in percents and defines a forecasted range of movement of the S&P 500 index, while the confidence level is prescripted as 68%. It means that the annualised number of volatility index will have its place with a probability of the mentioned percentage. The VIX is often called the “fear index”, but in fact it represents a presumed volatility in two direction including the upside movement.

It is important to note that the VIX is a calculated index similar to S&P 500, but it is not based on the prices of constituting stocks. It uses the price of options on the S&P 500 to describe their volatility. Even if the VIX cannot be traded directly, the Chicago Board Options Exchange provides VIX options instruments and they base their value on the VIX futures (not the index itself). Additional products incorporate the VIX volatility exchange-traded products.

The movement of the index have a high dependency on the market sentiment and reaction. While investors feel uncertainty and try to take gains (or cut the losses), this approach increases the market volatility and is reflected by the VIX number.

The AEX index, which is based on Amsterdam Exchange Index, is a stock market index formed from the stocks of Dutch companies traded on Euronext Amsterdam (formerly - Amsterdam Stock Exchange). The index was started in 1983 and formed from 25 the most tradable stocks in the exchange. The index is treated as national and serves as a leading indicator along with Brussels' BEL20, Paris's CAC 40, and Lisbon's PSI-20 in the Euronext Exchange.

The AEX25 is a capitalization-weighted index. The main review of the index is conducted once a year while the companies weighting is capped at 15%. The March 1 date is used as a benchmark to close prices of relevant companies stocks, which are used in the index. During the interim reviews, the weightings after adjustment are defined as close as possible to the previous day numbers and not re-capped.

The Amsterdam Stock Exchange had a merging with the Brussels Stock Exchange and the Paris Stock Exchange on September 22, 2000. Today it is known as Euronext Amsterdam. The Amsterdam stock exchange is treated as one of the oldest “modern” exchanges or stock markets in the world. The market was established by the Dutch East India Company in 1602 as a market of equities (previously the market trade was focused on commodities only).

The S&P/ASX 200 index is a market-capitalization weighted indicator that serves as a float-adjusted stock market and incorporates Australian stocks which are included in the Australian Securities Exchange from the Standard & Poors. The index was started in March 2000, and its starting value was 3133.3 (the value of the All Ordinaries on March 31, 2000).

The ASX 200 company's contribution to the index is related to the total market value of a company. It means that a share price is multiplied by the number of tradable shares to find a place in the index list. A float-adjusted quality of the ASX 200 is defined as an absolute numerical contribution to the index.

The trading volume, required for stocks to be enlisted in the index, is estimated in dollars. The volume of trade and the dollar value of the stocks have to be bigger than 0.025% of the whole eligible securities' trading volume. There is a measure to ensure that none of the stocks has a dominant position in the index – the assets have a cap of 15% for their value, the volume of trade and the transactions number.

It is important to note that any strategic shareholdings that exceeded 5% of total emitted shares are excluded from a relevant float during the calculation of the float-adjusted market capital of the stock (which defines the stock weight in the index, such as ASX 200).

The IBEX 35 (Índice Bursátil Español) is the benchmark stock market index used for Bolsa de Madrid, Spain's stock exchange. The index started its activity in 1992. It is managed and calculated by Sociedad de Bolsas, which is also a subsidiary to Bolsas y Mercados Españoles (BME). The BME runs securities markets in Spain, including the Bolsa de Madrid.

The IBEX 35 is a market capitalization weighted index which incorporates 35 the most liquid Spanish companies stocks that are traded in the Madrid Stock Exchange General Index. The index list is reviewed twice a year. The futures and options trade using the IBEX 35 is maintained by another subsidiary of BME, Mercado Español de Futuros Financieros (MEFF).

The months of the index review are June and December. This procedure is conducted by Technical Advisory Committee. The Committee incorporates representatives of stock exchanges, derivative markets, and experts in finance and academic sciences. All changes conducted during the review have an influence on the first trade day after the third Friday of the rebalance.

The IBEX 35 is formed from 35 companies with the highest trading volume in Europe for the prior six months to the date of review. An average free float market cap of each asset is 0.3% of the total market cap of the index. Another requirement is that these stocks either have to be traded on at least a third of all trading day in the previous six months or to be in the top twenty overall in market cap.

The main requirement for stocks to be included in Russell 2000 Index is to have a market capitalization level on the U.S. exchanges at $4 billion or less. 85% of the stocks, traded in the exchanges of the country (over 8000), show this performance. To be displayed in the index list they also have to demonstrate the offshoot growth and appropriate value indices.

The index administrating company, Russell Investments, also administer many different market capitalization based indices, and they include one-third of the general amount of stocks of 6800 companies. The most dynamic and active index among them is the Russell 2000 (TF) contract (E-mini Index Future).

The index consists of small-cap stocks, is often serves as a general market leading indicator. The TF contract indicates the market at the same grade as other leading market indicators, such as S&P 500. For the past years, it was already used as the leading market indicator and presumably will be keeping its position for several years in the future.

The trading instrument, such as TF futures, forms more than a half of the overall volume the ER2 previously had. For example, an average daily volume in the TF is approximately 150,000 contracts (the volume of the ER2 was at 250,000-300,000 contracts daily). The indicator has a high liquidity that is quite appropriate for a major part of the traders whose use it.

The Swiss Market Index (SMI) is Switzerland's stock market index, which incorporates blue-chip companies. All these companies have the most liquid stocks (large- and mid-cap) in the market and belong to the TOP-20 of the Swiss Performance Index (SPI).

The SMI is a price index, it does not incorporate dividends, but the index which defines performance of the stocks is also available and called “SMIC”.

The SMI was started in 1988 and based on 1500 points. The index composition is examined once a year. The index value is calculated in real-time and based on fresh transactions of the securities which constitute the SMI. An updated level is calculated and revealed as soon as possible.

The SMI list of securities presents 90% (and more) of the entire market capitalization. It also displays the stocks which form 90% of the market trading volume from all Swiss and Liechtenstein equities listed on the SIX Swiss Exchange. However, the index is considered as minor to the overall Swiss stock market performance, but it is used as an indicator for the financial instruments concerned derivatives (options, futures and index funds, like ETFs).

The main criteria for the equity to be presented in the SMI (besides the market capitalization) is liquidity. The security has to show at least 50% of the average liquidity and have a minimum free-float capitalization equal to 0.45% (or more) of the overall SPI capitalization.

The S&P/TSX 60 Index is a stock market index, which incorporates the 60 largest companies listed on the Toronto Stock Exchange. The index is managed by the Canadian S&P Index Committee, a division of Standard & Poor's, and it presents investors to ten major industry sectors.

More complex indicator, the S&P/TSX Composite Index presents near 70% of the total market capitalization on the Toronto Stock Exchange (TSX) and contains more than 250 companies. The highest recorded position of the index was in September 2014 (15,657.63.) The TSX itself is a basis for operation with the stocks of more than 1,500 companies.

For eligibility terms on a defined security, a minimum weight of 0.05% has to present in the index . A minimum weighted average price of companies’ security has to be on the list at 1 Canadian dollar for the period of three months, and over the last three trading days in the month period before the exchange reviewed the index.

The trading volume, required for stocks to be enlisted in the index, is estimated in dollars. The volume of trade and the dollar value of the stocks have to be bigger than 0.025% of the whole eligible securities' trading volume. There is a measure to ensure that none of the stocks has a dominant position in the index – the assets have a cap of 15% for their value, the volume of trade and the transactions number. All securities have to be listed on Toronto Stock Exchange and they all have to be incorporated under the conditions of the laws of Canada.

This index is approved by Canadian Tire Financial Services and based on one of supersectors of the STOXX benchmark index. The STOXX is a subsidiary of Deutsche Börse Group (it is fully owned) and it includes more than 7,500 different indices.

According to the Industry Classification Benchmark, the Euro STOXX Banks has 19 supersectors in which the companies are organized according to their sources of revenues. Supersectors include (among others): basic resources, construction and materials, food and beverage, financial services, healthcare, industrial goods and services, oil and gas, communications, technology, and banks.

Because of the primary source of revenue categorization, the companies are defined carefully and represented in an appropriate business environment. This system assures that none of the components will dominate. The Euro STOXX Banks Index includes ten banks basing on their revenues, which are chosen according to the free-float market cap. The index is expressed in the EUR.

The Nifty index is used in trade in the National Stock Exchange (NSE) of India. This index is also traded in the U.S. on the Chicago Mercantile Exchange (CME) and in the Singapore Exchange (SGX). The Nifty futures with the most trading volumes in NSE include the CNX Nifty (50 stocks of the companies from 22 sectors of the economy), the Bank Nifty (12 largest banks in India), and Nifty Midcap 50 (midcap stocks).

The CNX Nifty Futures have an appropriate liquidity for the traders who prefer active day trade, long-term trade, and hedging. The Bank Nifty Futures are mostly used in a short-trade and a long-trade. It is important to note, that trading volumes can have varied amounts from day to day, and the SGX Nifty Futures index may include not all the companies presented in the NSE Nifty 50.

This trading instrument is based on the MSCI Emerging Markets Index. This index was started by Morgan Stanley Capital International in 1988 and presented just 10 countries (1% of the world market capitalization). The modern index presents 23 countries (10% of the world market capitalization). The Emerging Markets Index covers 85% of the free float-adjusted market capitalization in each country, it is available for several regions and market segments.

The main purpose of the index is to estimate equity market performance of the world emerging markets by using 832 parameters and having large corporations, like Samsung Electronics or Alibaba Group as its constituents. This trading instrument is treated as risky and has a high volatility. It also has a small influence on events of developed markets. MSCI Emerging Markets Futures are traded on the Euronext New-York Stock Exchange segment by using the USD as a main currency.

Risk warning

Trading CFDs and Spot Contracts involves a high level of risk.
CFDs trading may not be suitable for everyone, so traders need to ensure that they fully acknowledge all financial and legal aspects and accept any risk of losses that might occur in their investment.
Independent advice should be sought if necessary.

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