Trade major world indices
A stock market index is a measurement of a section of the stock market. It is calculated from the prices of selected stocks. Stock market indices are used by investors to describe the market and compare the return on specific investments. Follow all the major world indices live with Capital.com.
What are some popular indices?
CFDs provide opportunities to trade the world’s most popular indices. Capital.com offers CFDs on a wide range of indices from all over the globe ranging from iconic indices like the NASDAQ 100, Dow Jones and FTSE 100 to more particular indices such as the Wig 20 or the IBEX 35.
Take a look on this page to discover all the indices you can trade with us. You can organise the entirety of our indices instrument table by the most traded, most volatile, top risers and top fallers. Our interactive table displays prices in real time as well as shows the past two days percentage change. Follow live indices prices and charts here.
Trade CFDs on indices
The advantage of trading indices is that they have multiple components. We offer indices like the DAX that has 30 constituents, which measures the top performing German stocks, or much broader indices like the S&P 500. Multiple components not only diversify risk to an extent, but they offer the opportunity for greater volatility due to the fact that there are simply more moving parts. Trade CFDs on indices with Capital.com now.
Dividends and positions on indices
Dividends will be accrued to clients who hold positions on indices.
What is a dividend?
The distribution of a section of a company’s earnings to its shareholders is known as its dividends. Dividends are a portion of earnings chosen by the company’s board of directors and can be issued in the form of shares of stock, cash payment or property. When a company makes a profit it can reinvest this money back into the company and/or distribute the profits to its shareholders. If a company decides to pay its shareholders dividends, a fixed amount per share is designated and shareholders will receive this amount at a specific date. The ex-dividend date determines when trading in the underlying stock no longer includes an entitlement to the upcoming dividend payment and therefore on the ex-dividend date the value of the underlying share will decrease by the approximate dividend value. Anyone already holding a position in the underlying stock prior to and going into the ex-dividend date will be entitled to receive, or required to pay, the dividend depending on whether they are long or short. Anyone opening a position on the ex-dividend date will not be entitled to, or required to pay, the dividend.
Example of how dividends are applied for indices
An index typically reflects the weighted average share price of several underlying stocks trading on the same exchange, therefore if one of these stocks declares a dividend payment then the underlying share price will decrease by the dividend value and the index will also decrease by the equivalent weighted average value of the same dividend on the ex-dividend date. Clients that hold positions on indices will receive or pay the equivalent weighted average value of the same dividend on the ex-dividend date.
