In short
- Index CFDs track benchmarks like the FTSE 100, S&P 500 and DAX.
- Retail leverage: 20:1 on major indices.
- Costs: spread, overnight financing, and dividend adjustments.
Popular indices
| Broker name (typical) | Underlying index | Market |
|---|---|---|
| UK 100 | FTSE 100 | UK large caps |
| US 500 | S&P 500 | US large caps |
| US Tech 100 | Nasdaq 100 | US technology-heavy |
| Wall Street 30 | Dow Jones Industrial Average | US blue chips |
| Germany 40 | DAX | German large caps |
Brokers use their own names because of index licensing.
How profit and loss work
Index CFDs are usually priced per point. With a £2-per-point spread bet on the UK 100, a 40-point rise makes £80. With CFDs, P&L depends on contract size, which differs by broker — check the market information sheet.
Margin example
A UK 100 position worth £16,000 at 20:1 needs £800 margin. A 1% move against you costs £160 — 20% of that margin.
Costs
- Spread — tightest during the cash market's hours
- Overnight financing — see how financing works
- Dividend adjustments — long positions are credited and shorts debited when index constituents pay dividends
When indices move most
- Market opens: UK 100 at 08:00, US indices at 14:30 UK time
- Central bank decisions and major economic data
- Company earnings seasons
Frequently asked questions
What leverage is allowed on index CFDs in the UK?
Retail clients can use up to 20:1 on major indices and 10:1 on non-major indices.
Are index CFDs open 24 hours?
Many brokers offer near-24-hour trading on major indices from Monday to Friday, with wider spreads outside the cash market's hours.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.