To open a ThinkMarkets AU account, please read and sign the below document.
Join thousands of traders who choose a mobile-first broker for trading the markets.
Get $50,000 of virtual funds and prove your skills in real market conditions.
Take positions on global indices from just 0.4 points*
Fixed spreads from just 0.4 points on Trade Interceptor or tight variable spreads on MT4
We are authorized and regulated by FCA and ASIC
Award-winning mobile app - Trade Interceptor
*On Trade Interceptor
An index is made up of a group of shares and is used to track the performance of a country’s economy, a market sector or an exchange.
The most traded indices include the Dow Jones Industrial Average, S&P 500, FTSE, DAX, ASX200, NASDAQ, CAC, EuroStoxx and Nikkei 225.
Since indices are just a number, they can’t be traded directly. You need a financial instrument, like CFDs, for that. In fact, indices trading is the most popular form of CFD trading.
The amount of money made or lost on a trade depends on the market move and the size of your position. At ThinkMarkets, you can start trading indices with a starting capital of just $250.
of our traders have also tried trading Bitcoin
With over 550,000 users globally and more than 15,000 five-star reviews, our Trade Interceptor platform has been designed to bring the power of a desktop platform to all your mobile devices.
Available to download on
Test your strategy with a trading simulator that lets you replay, pause and rewind real market price.
Enhance your technical analysis with powerful technical indicators and over 50 drawing tools, available through all your mobile devices.
Select the platform that suits your needs between the robust Trade Interceptor and the popular MetaTrader 4.
Downloaded by over 550,000 traders, the Trade Interceptor app offers an unparalleled trading experience across desktop, tablet and especially mobile.
Our multi-lingual support team is here to assist you with all your questions 24 hours a day, 5 days a week via email, telephone and live chat.
Naeem Aslam -
*Gold, Nasdaq and Dow Jones are in strong uptrend
*The FOMC meeting may...Read More
*Price retraced from active area of resistance
*GBP/USD could find its...Read More
*The Fed is going to cut the interest rate by 25 basis points
*Another rate cut...Read More
ThinkMarkets is the proud winner of the year in the categories Best Forex Trading Experience & Best Forex Trading Innovation by the UK Forex Awards 2017.
The first index ever was created by Mr. Charles Dow in 1896 and is most widely known as the Dow index. Today, the Dow contains 30 of the largest US companies. It is useful to know that an index is just a list of stocks and therefore anybody can create one. This was the case during the dotcom period for example. However, what distinguishes major indices from the rest is the reputation of the companies it represents. Below is the list of the nine most important and most heavily traded indices.
Dow Jones Industrial Average (US30)
It includes 30 of the most influential companies in the US and is price-weighted. This means the companies with larger share prices have greater impact over its value.
S&P 500 (SPX500)
The S&P 500 index is float-weighted. This means, the constituent stocks impact the overall value of the index based on their market capitalisation and float (i.e. the percentage of the company that is publicly traded).
The FTSE comprises the 100 companies with the highest market capitalisation on the London Stock Exchange and is a market-weighted index, meaning its value is proportional to its constituent companies. Larger companies have greater impact on its value than smaller ones.
The “Deutscher Aktienindex” is an index made up of the 30 major stocks in Germany on the Frankfurt Stock Exchange. As a result, it is similar to the Dow Jones Industrial Average of the US in this regard.
ASX200 (AUS 200)
This index comprises only stocks listed on the Australian Stock Exchange and is capitalisation-weighted; therefore, constituent companies with a higher market capitalisation will impact it more.
Along Dow Jones and S&P500, Nasdaq is one of the most followed indices in the US and includes 100 companies with heavy focus on information technology.
Known in full as the “Cotation Assistée en Continu,” it refers to the stocks listed on France’s Euronext Paris (“Paris Bourse”) stock exchange. They are selected by an independent committee quarterly, out of the 100 companies with the highest free float market capitalisation (i.e. the highest market value that is publicly traded).
Introduced in 1998, ESTX50 is comprised of the 50 largest companies in the Eurozone and was created with the aim “to provide a blue-chip representation of Supersector leaders in the Eurozone”.
Nikkei225 is the primary stock index on the Tokyo Stock Exchange and it is price-weighted, just like the Dow Jones Industrial Average of the US. In fact, between 1975 and 1985 it was referred to as the “Nikkei Dow Jones Stock Average".
Trading indices is a popular alternative to traditional shares trading, because it allows traders to take a broader view on a group of companies and reduce the risk of being exposed to an individual company. The ability to buy or sell any index is among the key attractions for traders.
Trading indices enables you to go both long (buy) and short (sell), making it an ideal hedging instrument. You can, for example, go long on HSBC because you anticipate an increase in the bank’s share price and on the same time go short on the FTSE100, in order to protect your investment from an adverse market movement.
Let’s look at how trading indices works in practice. Your indicators give you an entry signal and you anticipate a rise in the price of the US S&P500. For that reason, you go long (buy) 3 contracts at the price of 2.288. Despite some initial volatility, the market pushes up and half an hour before market close the index is trading at 2.319. You decide to close the position and secure your profits. The profit made on this trade is 2.319 – 2.288 = 21 points. With 3 contracts, each point is worth $30, so your total profit is 21 x $30 = $630.
Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary. It's important for you to consider relevant legal documents (for clients of TF Global Markets (Aust) Pty Ltd) this includes Product Disclosure Statement and Financial Services Guide, before you decide whether or not to acquire any of our products.
TF Global Markets (UK) Limited is authorised and regulated by the Financial Conduct Authority, FRN 629628. Registered address: 4th Floor, 30 City Road, London EC21Y 2AY. Company number: 09042646.
TF Global Markets (Aust) Pty Ltd is the holder of Australian Financial Services Licence number 424700. Registered address: Level 12, 636 St. Kilda Road, Melbourne, VIC, Australia 3004. ABN: 69158361561.
TF Global Markets (South Africa) Pty Ltd is an Authorised Financial Services Provider (FSP No 49835). Registered address: 14 Pebble Beach Close, Wingate Golf Estate, Moreletapark 0042 South Africa. Registration number 2017/098181/07.
Think Capital Limited is registered in Bermuda, Company number: 51879. Registered address: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
TFG (Payments) Limited is registered in the United Kingdom, Company number 10537331. Registered address: 4th Floor, 30 City Road, London EC21Y 2AY.
The information on this site is not directed to residents of the United States, Canada and Japan and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
© 2019 This website is owned and operated by ThinkMarkets Group.