I’ve been trading stocks but am new to CFDs. Are CFDs good for trading indices?

tomorton

Legendary member
8,418 1,342
Indices can be traded using conventional technical analysis, just as if you were looking at a stock price chart. A significant difference is that the constituent companies with an index are adjusted periodically to eject the weaker shares and incorporate stronger ones. This means that the index must have a positive bias (over a long period of time).

If you are in the UK, you can trade indices using spreadbetting rather than CFD's. Same principles, same charts, same regulation but spreadbetting is exempt from tax.
 
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angelandrews

Junior member
16 0
CFDs are safer in comparison to stocks.
 
 
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