Index CFD Trading: Nasdaq, S&P 500 and Nikkei
An index CFD tracks a stock index such as the Nasdaq 100, S&P 500 or Nikkei 225. Profit per point depends on the broker's contract size (often 1 unit of currency per point per lot, but it varies). Offshore leverage on major indices is often high (Titan FX lists 1000:1 on Standard and Blade), while EU retail clients get 20:1. Check trading hours, the contract size and financing before you trade.
The main indices
| Index | Tracks | Typical CFD symbols |
|---|---|---|
| Nasdaq 100 | 100 large non-financial Nasdaq companies, tech-heavy | NAS100, US100, USTEC |
| S&P 500 | 500 large US companies | US500, SPX500 |
| Dow Jones 30 | 30 US blue chips | US30 |
| Nikkei 225 | 225 Japanese companies | JPN225, JP225 |
Contract size and point value
The broker decides what one lot is. A common setup is 1 lot = 1 unit of the quote currency per point, but some brokers use 10 or other multiples. Always check the specification.
Example (1 lot = $1 per point, illustrative level):
- Nasdaq 100 at 20,000. 1 lot is worth $20,000.
- Margin at 1000:1: $20. At 20:1: $1,000.
- A 200-point move (1%) = $200 per lot.
The same 1% move in EUR/USD at 1.0800 is about 108 pips; indices move this much in a day more often. Size accordingly with the lot calculator.
Leverage by broker
- Titan FX: major indices (JPN225, NAS100, US30, US50) at 1000:1 on Standard and Blade; not offered on Zero Micro.
- BigBoss: indices 50:1 fixed (500:1 fixed on one account), per its account chart.
- EU retail: 20:1 for major indices under ESMA’s measures.
Index leverage is often set separately from FX. See leverage explained.
Costs and session effects
- Spread in points; tightest when the underlying cash market is open, wider outside it.
- Financing charged overnight; long positions usually pay (swap).
- Dividend adjustments around ex-dividend dates.
- Gaps at the cash open and after weekend news.
What moves indices
Earnings season, interest-rate expectations, US data such as CPI and NFP, and for the Nikkei, the yen. See the economic calendar. For single companies rather than indices, read US stock CFDs; brokers are compared on stock CFD brokers.
Related
Frequently asked questions
What are index CFD symbols called?
Brokers name them differently: NAS100, US100 or USTEC for the Nasdaq 100; US500 or SPX500 for the S&P 500; JPN225 or JP225 for the Nikkei 225. Check Market Watch.
What leverage is available on indices?
Titan FX lists 1000:1 on major indices (JPN225, NAS100, US30, US50) for its Standard and Blade accounts. BigBoss lists 50:1 fixed on indices on at least one account. EU retail clients are capped at 20:1 for major indices.
Do index CFDs pay dividends?
You don't receive dividends directly, but brokers often adjust long and short positions on index CFDs when constituent companies pay them.
When can I trade the Nikkei or Nasdaq?
Index CFDs often trade nearly 24 hours on weekdays, following futures hours, with a daily break. Exact hours are in the contract specification.
