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Indices

Indices and Index CFDs

A stock index tracks the performance of a specific group of equities, serving as a benchmark for a particular segment of the financial market. For example, the FTSE 100 reflects the performance of the largest companies listed on the London Stock Exchange, while the DJIA tracks 30 major public companies in the US.

An index value is calculated based on the prices of its underlying constituents. Price fluctuations in individual component shares influence the overall index value according to its specific weighting methodology.

Index CFD Execution

Index CFDs allow market participants to gain exposure to index price movements without purchasing the underlying constituent shares. Through CFDs, clients can take positions based on their expectations of upward or downward market movements.

As leveraged financial instruments, Index CFDs carry a high level of risk and can result in capital losses.

Dividend Adjustments on Index CFDs

Certain stock indices factor in the dividend payouts of their constituent companies. Consequently, dividend adjustments may apply to open CFD positions on specific indices.

The size and direction of the adjustment depend on the specific instrument, index composition, position direction (long or short), and applicable trading terms.

Dividend adjustments may be credited to or debited from your account in accordance with the CFD contract specifications and the timing of position holding relative to the ex-dividend date.

Applicable rules, dates, and adjustment values should be referenced within the relevant instrument specifications or directly on the platform.

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