Indices Trading

Indices Trading with Tight, Fixed Spreads

Our spreads start from as low as 0.8 for spread betting on the UK100 (FTSE 100) and US30 (DJIA Index) during market hours. Our spreads are fixed, no matter what happens – even when there’s a major event that affects stock markets around the world. So you can trade with confidence as you’ll always know the cost to open or close a position. Trade with Spread Co and enjoy:

  • Tight Spreads – 0.8 spreads on UK100 and US30, 1 point spreads on GERMANY30 and NDQ100
  • Lower Capital Investment – Spread Betting and CFD margins are typically 5%, so you can leverage your capital up to 20 times. This means you only have to tie up a fraction of what you normally have to when you buy shares.
  • Low Financing Charges – No Financing Charge for short Index positions
  • 2% on Cash Balances – 2% per annum on any balance in your account, from £10,000 up to £20,000, that’s not being used as margin*
No Major Outlay

What are Indices?

An Index is a theoretical portfolio of securities that might include the shares of companies of a particular size, in the same geographic area, or in the same industry sector

For example, the FTSE 100 comprises the top 100 UK companies measured by market capitalisation (the price of their shares multiplied by the number of shares in circulation).

The relative market capitalisation of a company determines their weighting within the UK100. For example, 1% change in the price of Royal Dutch Shell will impact the UK100 more than a 1% change in Tullow Oil as Shell has a larger market capitalisation.

INDEX TRADING WITH SPREAD CO

Access to trade on the leading global indices including:

  • FTSE 100 – through our UK100 and UK100 Future indices, with margins as low as 20% for spread bets and CFD
  • DJIA – Dow Jones Industrial Average through our US30 and US30 Future indices
  • Other global indices – Japan 225 (Nikkei), NDQ100 (NASDAQ), US500 (S&P 500) and Germany30 (DAX)

To give our clients even greater flexibility, we offer daily rolling contracts and futures contracts on our indices.

Advantages over share dealing

Trading this way has two key advantages over traditional share dealing:

  • Profit when prices rise or fall – when you buy shares in a company, you’ll only profit when the share price rises. With spread betting and CFDs you can speculate that a company’s share price may fall as well as rise.
  • Lower capital investment – spread betting and CFD margins are typically 5%, so you can leverage your capital up to 20 times. This means you only have to tie up a fraction of what you normally have to when you buy shares.

View our market information for further details on our spreads and margin requirements. Take a look at a spread betting or CFD example.