An “Indices” is an index of value of a specific market. For example, when a market starts it is at 0, and then the growth is indexed from that point onwards. Indices are traded in the form of Contracts for Difference or CFDs. CFD trading greatly diversifies the instruments you have acess to, allowing for a more risk resistant trading strategy.Indexes provide a market wide value of specific markets by basing its relative value on companies from within the market. Typically, these companies are selected based on related criteria and as well as groupings of similar industries. Indices are generally less volatile than Forex markets and are used more as a store of wealth than as a generator of wealth.
Indices vastly increase the market size that traders have access to and as such increase the opportunities presented to a trader. CFDs give traders the ability to trade across global equity markets. BlackBull Markets does not have a commission on CFDs, no secret mark-ups or re-quotes.
Dividends on Indices & Equities
The Equity and Index markets may be subject to a Dividend adjustment to reflect that the underlying asset will open at a lower level post dividend date. When a Corporate Action takes place from an individual stock which is constituent of a stock index, BlackBull Markets will book the charge to the clients account to reflect the effect this corporate action has on the stock index.
The dividend will be paid/charged on a timely basis the next day, however as we are dependent upon notification from an external third party, BlackBull Markets should not be liable for the consequences of any delayed charges.
Exchange: Australia, ASX
The AUS200 is the primary index used for the Australian economy. The AUS200 is an index of the top 200 stocks that are traded on the Australian Securities Exchange (ASX). The AUS200 uses a capitalization-weighted method to determine which stocks to incorporate, ensuring the included companies’ index contribution is relative the market value.
Exchange: German, FXS
The GER30, known as the DAX30 as well, is an index of the 30 largest companies listed on the Frankfurt Stock Exchange (FSX). The companies used to determine the Index are the largest and most liquid German companies that trade on the FSX. GER30 index prices are calculated through Xetra, an electronic trading system.
USA, NASDAQ & NYSE
The US30 is also commonly known as The Dow Jones Industrial Average. It is one the benchmark stock index for U.S. Market, and at over 131 years old, is the second oldest. Comprising of the largest 30 blue-chip company stocks from multiple U.S. Exchanges, the US30 is calculated using a price-weighted average.
USA, NASDAQ, NYSE
The SPX500 is also known as the S&P 500, is an Index of 500 American stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is the leading indicator of U.S. equities and is widely considered to be the best representation of the value of the US stock market. Being a composite Index it is made up of multiple components and weightings is calculated using a free-float capitalisation-weighted method.
The UK100 is also known as the FTSE100 (Footsie) index and is the primary index of the London Stock Exchange (LSE). It represents roughly 80% of the market capitalization of the LSE. The Footsie consists of 100 blue chip stocks from the LSE, but is not considered a good representation of the UK economy, but rather the large cap businesses. The value is calculated by a capitalisation method.
Exchange: Japan, TSE
The JPN255 is also known as the Nikkei is the most widely used average for Japanese equities. Commonly known as the Japanese version of the Dow Jones Industrial Average. The JPN225 is comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange (TSE). The JPN255 uses a price-weighted indexing method to calculate its value.
Black Bull Group Limited (trading name: BlackBull Markets) is a company registered and incorporated in New Zealand (NZBN 9429041417799) located at Level 22, 120 Albert Street, Auckland 1010. Black Bull Group Limited is a registered Financial Services Provider (FSP403326) and holds a Derivative Issuer Licence issued by the Financial Markets Authority.
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Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
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