What are Indices?

Stock market indices provide a simplified way to view the strength or weakness of a collection of equities. Whilst there are thousands available, traders and news outlets tend to focus on the larger benchmarks of major economies.

For example, the S&P 500 represents the 500 largest stocks in the US, whilst the ASX 200 represents the 200 largest in Australia. But it can be more specific, such as the Nasdaq 100 focussing on the largest technology stocks in the US.

Whilst indices were originally a means to visual stock market strength, they are now fully tradable instruments thanks to the advancement of technology and derivatives markets.

How Can You Trade Indices with Three Markets?

How Can You Trade Indices with Three Markets?

ThreeMarkets provide access to stock market indices via CFDs (Contracts for Difference). As CFDs are a derivative, the trader does not own the underlying market of the CFD. Yet they can trade both long and short without restriction.

We provide access to trade some of the more popular indices. With no less than 14 indices to choose from, our traders can take a directional view of major economies across the globe.

US500

The S&P 500, 500 largest stocks in the US

NAS100

The technology focussed US Nasdaq 100 index

US30

The famous Dow Jones Industrial Average

AUS200

Australia’s ASX 200 index

JPN225

Japan’s Nikkei 225 index

UK100

UK’s FTSE 100 index

GER30

Germany’s DAX index

EUSTX50

Euro STOXX 50 index

FRA40

France’s CAC index

HSCHKD

China’s H-Shares index

CHCUSD

China’s H-Shares index

HK50

Hong Kong’s Hang Seng index

SGCSGD

Singapore’s top 30 index

USIDX

A US dollar currency index

MAKE TRADING SIMPLE

Indices Trading Example

Entering a trade
Short Nasdaq 100 (NAS100)

The Nasdaq 100 is trading at 12,800. A trader expects the index to fall in value, so they short (sell) one contract of the NAS100 CFD, which is the equivalent to $12,800 (1 contract x 12800).

The trader also enters a protective stop at 13,200, and a take profit order at 12,000.

Exiting a trade
A profitable example

Over the next week, the Nasdaq 100 falls to 11,000 but triggers the take profit order to close the trade at 12,000.

The take profit order provides the trader with a profit of $800
$12,800 x (12,800 – 12,000) = $800

Exiting a trade
A loss example

Unfortunately, the Nasdaq 100 rises in value and automatically triggers the stop loss order when the price moved above 13,200.

The protective stop closes the trade for a loss of -$400
$12,800 x (12,800 – 13,200) = -$400