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.


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


The technology focussed US Nasdaq 100 index


The famous Dow Jones Industrial Average


Australia’s ASX 200 index


Japan’s Nikkei 225 index


UK’s FTSE 100 index


Germany’s DAX index


Euro STOXX 50 index


France’s CAC index


China’s H-Shares index


China’s A50 index


Hong Kong’s Hang Seng index


Singapore’s top 30 index


A US dollar currency index


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