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We're more than just a broker. We're an all-in-one trading ecosystem—everything you need to analyse, trade, and grow is in one place. Ready to elevate your trading?
Education
10 search results for swap
glossary
-
SwapIs a payment for holding a position overnight. Swap can be negative or positive.
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Swap-free accountIs a type of account designed for traders of Islamic faith that has fixed fee instead of swap. The fee is not an interest and depends on the direction of the order.
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UniswapThe Uniswap platform was built to solve various liquidity issues on specific platforms. Its digital currency uses the abbreviation UNI.
faq
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How do I switch my MT4 account to regular or swap-free?All Elev8 accounts are already swap-free and Sharia-compliant, allowing halal trading. You do not need to turn swaps off manually.
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What happens if I leave my order open overnight?We won't charge you any commission for holding an order overnight–all of our accounts are swap-free.
tutorials
-
How to open a trading account with Octa
How to register with Octa
- Press the Open Account button to create a trading account.
- Fill out the form or sign up via Facebook, Google, or Apple ID.
- Enter your real email: we will ask you to confirm it.
- Set a password: you will use it to access all trading accounts.
- Press the Sign Up button to proceed.
- Check your email. In the letter from us, press the Confirm button.
- Provide your personal details. Press Continue to proceed. Be honest—you'll have to verify your identity later to withdraw money.
- Configure your new trading account.
- Standard: quick-start with the most popular trading setup. Get a real MetaTrader 5 account with a leverage of 1:500.
- Custom: adjust your account type (real or demo), trading platform, and leverage ratio manually.
- Press Create Account to end the registration process.
That's it—your Octa account is ready. Press Deposit to top up your real account and start trading.
How to start trading
- Once you have signed up, check your email to find your login and trading account password.
- Open your profile and press New Deposit.
- Choose a payment method and top up your trading account.
- Press the Trade button. Use your trading password to log in and start trading on MetaTrader 5.
Trading account type: real or demo?
We offer real and demo accounts on all available trading platforms: MetaTrader 4 (or MT4), MetaTrader 5 (or MT5), and OctaTrader.
Real accounts
You trade with real funds, and your losses and profits are also real. To start trading on a real account, you have to make a deposit first. Octa doesn't charge any deposit or withdrawal fees at all. You can choose among multiple payment methods, including crypto transfers. Trading on a real account also allows you to participate in our status program: unlock extra tight spreads and many other benefits by reaching certain balance levels.
Demo accounts
You trade with virtual funds: there's no risk involved, and you don't have to make a deposit. However, you can't withdraw any profit from a demo trading account. You should try demo trading if you want to practise or test new trading strategies in real market conditions but without risking any real money.
You can have any number of demo accounts, but inactive ones get closed after a while. We send a letter with a trading password for each of them to your email—just like with the real ones. Demo accounts have $5,000 by default, but you can claim up to $1,000,000 in virtual money and add more later.
Trading platform: MetaTrader 4, MetaTrader 5, or OctaTrader?
Octa features three different trading platforms. Each of them has its own pros and cons, available tools for market analysis, and trading instruments. You can freely choose the one you like when creating a new trading account.
MetaTrader 4
MetaTrader 5
OctaTrader
Known as
Simple and popular
Technically advanced
Intuitive and versatile
Who might like
Everyone
Tech traders
Mobile traders
Currency pairs
✔️
✔️
✔️
Metals
✔️
✔️
✔️
Energies
✔️
✔️
✔️
Indices
✔️
✔️
✔️
Cryptocurrencies
✔️
✔️
✔️
Stocks
❌
✔️
❌
Maximum leverage
1:500
1:500
1:500
Timeframes
9
21
9
Precision
5 digits
5 digits
5 digits
Swaps
❌
❌
❌
Lowest spread
0.6 pips
0.6 pips
0.6 pips
Leverage: how to adjust it
Leverage is virtual credit provided by brokers. Octa features leverage of up to 1:500. That means you can deposit $1,000 to trade assets worth $500,000 for potentially greater profit. The actual credit limit depends on your margin or collateral to cover the risks and the asset type.
With leverage, you can make significant profits much quicker when trades go well—but you can also lose just as quickly if the market moves against your expectations. That's why some traders might want to limit their leverage to lower the risk.
You can set the preferred leverage during the registration process. Customise the account manually and adjust it ranging from 1:1 to 1:500. But it's not final: if you want to change the leverage, you can always change the ratio for each account separately in your profile later on.
To calculate the required margin and pip value of a trade, use our Trading calculator.
Islamic accounts on Octa: how they work
All trading accounts featured by Octa are swap-free and suitable for halal trading.
Islamic accounts are designed to comply with religious requirements for Muslim traders. Islam forbids any way of earning interest, including swaps. With swaps, you earn interest for keeping trades open overnight, so Islamic accounts must be completely swap-free.
Our accounts don't support swaps. We don't charge any fixed fees as well. That means you don't have to make a special Islamic account with Octa. Just create a trading account and enjoy all the benefits of an Islamic account.
Some Islamic scholars consider leverage trading unethical, too. If you share this view, you can create an account with no leverage. Just set your leverage to 1:1 during the registration process or at any time after. This way, you can trade only with your own funds and avoid borrowing money.
Verify your account to withdraw profits
To withdraw funds from your account, you need to verify your identity first.
- In your profile, go to the Settings menu—look for the cog icon next to your name in the upper right corner. Press Profile Verification.
- Upload photos of your identity document and press Submit Request. We will review your request and notify you via email when the process is complete. It usually takes about 1–2 office hours or less.
Once you receive the confirmation letter, you can start withdrawing funds.
Octa trading app: optimise your trading experience
The Octa app is our official mobile trading app. With it, you can manage accounts and make trades on the go. Use it to deposit and withdraw funds, browse market insights, and monitor all open positions without having to sit in front of the computer all day. It is free, user-friendly, and has everything you need to make your trading experience even more convenient and effective. It supports any account type and trading platform available with Octa.
How much does it cost to open a live trading account?
Nothing. Creating and maintaining an account with Octa is free: we do not charge deposit fees. But we have a minimum deposit amount: from $25, depending on the payment method.
How much does it cost to withdraw money?
Nothing. We do not charge withdrawal fees. But we have a minimum withdrawal amount: from $5, depending on the payment method.
Do I need to verify my identity to trade with Octa?
No, you can start trading right after you open a trading account and make a deposit. But you will have to verify your identity before you can withdraw any funds from your real trading account.
How much does Octa charge for trading?
We don't charge any fees or commissions. We offer tight spreads for trading instruments, including major currency pairs. Our spreads start at 0.6 pips for major Forex pairs.
Does Octa feature cent accounts?
No, we do not have cent accounts. If you want to practise trading skills, create a Forex demo account and trade in real market conditions with unlimited virtual funds.
Should I open a real or demo Octa account?
You can open both of them for free. Use your demo account to test new trading strategies or learn how to use certain analytical tools without risking your balance, then use your real account to earn a profit.
Does Octa feature any deposit bonuses?
Octa offers unlimited deposit bonuses of up to 50%. Such bonus funds are withdrawable, but you need to trade a certain number of lots before you can actually withdraw them.
How much money do I need to start trading?
The minimum deposit is $25, but we recommend starting with at least $100. With a 50% bonus, you get to trade with $150 right from the start.
-
How to open a trading account with Octa
How to register with Octa
- Press the Open Account button to create a trading account.
- Fill out the form or sign up via Facebook, Google, or Apple ID.
- Enter your real email: we will ask you to confirm it.
- Set a password: you will use it to access all trading accounts.
- Press the Sign Up button to proceed.
- Check your email. In the letter from us, press the Confirm button.
- Provide your personal details. Press Continue to proceed. Be honest—you'll have to verify your identity later to withdraw money.
- Configure your new trading account.
- Standard: quick-start with the most popular trading setup. Get a real MetaTrader 5 account with a leverage of 1:500.
- Custom: adjust your account type (real or demo), trading platform, and leverage ratio manually.
- Press Create Account to end the registration process.
That's it—your Octa account is ready. Press Deposit to top up your real account and start trading.
How to start trading
- Once you have signed up, check your email to find your login and trading account password.
- Open your profile and press New Deposit.
- Choose a payment method and top up your trading account.
- Press the Trade button. Use your trading password to log in and start trading on MetaTrader 5.
Trading account type: real or demo?
We offer real and demo accounts on all available trading platforms: MetaTrader 4 (or MT4), MetaTrader 5 (or MT5), and OctaTrader.
Real accounts
You trade with real funds, and your losses and profits are also real. To start trading on a real account, you have to make a deposit first. Octa doesn't charge any deposit or withdrawal fees at all. You can choose among multiple payment methods, including crypto transfers. Trading on a real account also allows you to participate in our status program: unlock extra tight spreads and many other benefits by reaching certain balance levels.
Demo accounts
You trade with virtual funds: there's no risk involved, and you don't have to make a deposit. However, you can't withdraw any profit from a demo trading account. You should try demo trading if you want to practise or test new trading strategies in real market conditions but without risking any real money.
You can have any number of demo accounts, but inactive ones get closed after a while. We send a letter with a trading password for each of them to your email—just like with the real ones. Demo accounts have $5,000 by default, but you can claim up to $1,000,000 in virtual money and add more later.
Trading platform: MetaTrader 4, MetaTrader 5, or OctaTrader?
Octa features three different trading platforms. Each of them has its own pros and cons, available tools for market analysis, and trading instruments. You can freely choose the one you like when creating a new trading account.
MetaTrader 4
MetaTrader 5
OctaTrader
Known as
Simple and popular
Technically advanced
Intuitive and versatile
Who might like
Everyone
Tech traders
Mobile traders
Currency pairs
✔️
✔️
✔️
Metals
✔️
✔️
✔️
Energies
✔️
✔️
✔️
Indices
✔️
✔️
✔️
Cryptocurrencies
✔️
✔️
✔️
Stocks
❌
✔️
❌
Maximum leverage
1:500
1:500
1:500
Timeframes
9
21
9
Precision
5 digits
5 digits
5 digits
Swaps
❌
❌
❌
Lowest spread
0.6 pips
0.6 pips
0.6 pips
Leverage: how to adjust it
Leverage is virtual credit provided by brokers. Octa features leverage of up to 1:500. That means you can deposit $1,000 to trade assets worth $500,000 for potentially greater profit. The actual credit limit depends on your margin or collateral to cover the risks and the asset type.
With leverage, you can make significant profits much quicker when trades go well—but you can also lose just as quickly if the market moves against your expectations. That's why some traders might want to limit their leverage to lower the risk.
You can set the preferred leverage during the registration process. Customise the account manually and adjust it ranging from 1:1 to 1:500. But it's not final: if you want to change the leverage, you can always change the ratio for each account separately in your profile later on.
To calculate the required margin and pip value of a trade, use our Trading calculator.
Islamic accounts on Octa: how they work
All trading accounts featured by Octa are swap-free and suitable for halal trading.
Islamic accounts are designed to comply with religious requirements for Muslim traders. Islam forbids any way of earning interest, including swaps. With swaps, you earn interest for keeping trades open overnight, so Islamic accounts must be completely swap-free.
Our accounts don't support swaps. We don't charge any fixed fees as well. That means you don't have to make a special Islamic account with Octa. Just create a trading account and enjoy all the benefits of an Islamic account.
Some Islamic scholars consider leverage trading unethical, too. If you share this view, you can create an account with no leverage. Just set your leverage to 1:1 during the registration process or at any time after. This way, you can trade only with your own funds and avoid borrowing money.
Verify your account to withdraw profits
To withdraw funds from your account, you need to verify your identity first.
- In your profile, go to the Settings menu—look for the cog icon next to your name in the upper right corner. Press Profile Verification.
- Upload photos of your identity document and press Submit Request. We will review your request and notify you via email when the process is complete. It usually takes about 1–2 office hours or less.
Once you receive the confirmation letter, you can start withdrawing funds.
Octa trading app: optimise your trading experience
The Octa app is our official mobile trading app. With it, you can manage accounts and make trades on the go. Use it to deposit and withdraw funds, browse market insights, and monitor all open positions without having to sit in front of the computer all day. It is free, user-friendly, and has everything you need to make your trading experience even more convenient and effective. It supports any account type and trading platform available with Octa.
How much does it cost to open a live trading account?
Nothing. Creating and maintaining an account with Octa is free: we do not charge deposit fees. But we have a minimum deposit amount: from $25, depending on the payment method.
How much does it cost to withdraw money?
Nothing. We do not charge withdrawal fees. But we have a minimum withdrawal amount: from $5, depending on the payment method.
Do I need to verify my identity to trade with Octa?
No, you can start trading right after you open a trading account and make a deposit. But you will have to verify your identity before you can withdraw any funds from your real trading account.
How much does Octa charge for trading?
We don't charge any fees or commissions. We offer tight spreads for trading instruments, including major currency pairs. Our spreads start at 0.6 pips for major Forex pairs.
Does Octa feature cent accounts?
No, we do not have cent accounts. If you want to practise trading skills, create a demo account and trade in real market conditions with unlimited virtual funds.
Should I open a real or demo Octa account?
You can open both of them for free. Use your demo account to test new trading strategies or learn how to use certain analytical tools without risking your balance, then use your real account to earn a profit.
Does Octa feature any deposit bonuses?
Octa offers unlimited deposit bonuses of up to 50%. Such bonus funds are withdrawable, but you need to trade a certain number of lots before you can actually withdraw them.
How much money do I need to start trading?
The minimum deposit is $25, but we recommend starting with at least $100. With a 50% bonus, you get to trade with $150 right from the start.
-
How to open a trading account with Octa
How to register with Octa
- Press the Open Account button to create a trading account.
- Fill out the form or sign up via Facebook, Google, or Apple ID.
- Enter your real email: we will ask you to confirm it.
- Set a password: you will use it to access all trading accounts.
- Press the Sign Up button to proceed.
- Check your email. In the letter from us, press the Confirm button.
- Provide your personal details. Press Continue to proceed. Be honest—you'll have to verify your identity later to withdraw money.
- Configure your new trading account.
- Standard: quick-start with the most popular trading setup. Get a real MetaTrader 5 account with a leverage of 1:1000.
- Custom: adjust your account type (real or demo), trading platform, and leverage ratio manually.
- Press Create Account to end the registration process.
That's it—your Octa account is ready. Press Deposit to top up your real account and start trading.
How to start trading
- Once you have signed up, check your email to find your login and trading account password.
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- Open your profile and press New Deposit.
- Choose a payment method and top up your trading account.
- Press the Trade button. Use your trading password to log in and start trading on MetaTrader 5.
Trading account type: real or demo?
We offer real and demo accounts on all available trading platforms: MetaTrader 4 (or MT4), MetaTrader 5 (or MT5), and OctaTrader.
Real accounts
You trade with real funds, and your losses and profits are also real. To start trading on a real account, you have to make a deposit first. Octa doesn't charge any deposit or withdrawal fees at all. You can choose among multiple payment methods, including crypto transfers. Trading on a real account also allows you to participate in our status program: unlock extra tight spreads and many other benefits by reaching certain balance levels.
Demo accounts
You trade with virtual funds: there's no risk involved, and you don't have to make a deposit. However, you can't withdraw any profit from a demo trading account. You should try demo trading if you want to practise or test new trading strategies in real market conditions but without risking any real money.
You can have any number of demo accounts, but inactive ones get closed after a while. We send a letter with a trading password for each of them to your email—just like with the real ones. Demo accounts have $5,000 by default, but you can claim up to $1,000,000 in virtual money and add more later.
Trading platform: MetaTrader 4, MetaTrader 5, or OctaTrader?
Octa features three different trading platforms. Each of them has its own pros and cons, available tools for market analysis, and trading instruments. You can freely choose the one you like when creating a new trading account.
MetaTrader 4
MetaTrader 5
OctaTrader
Known as
Simple and popular
Technically advanced
Intuitive and versatile
Who might like
Everyone
Tech traders
Mobile traders
Currency pairs
✔️
✔️
✔️
Metals
✔️
✔️
✔️
Energies
✔️
✔️
✔️
Indices
✔️
✔️
✔️
Cryptocurrencies
✔️
✔️
✔️
Stocks
❌
✔️
❌
Maximum leverage
1:1000
1:1000
1:1000
Timeframes
9
21
9
Precision
5 digits
5 digits
5 digits
Swaps
❌
❌
❌
Lowest spread
0.6 pips
0.6 pips
0.6 pips
Leverage: how to adjust it
Leverage is virtual credit provided by brokers. Octa features leverage of up to 1:1000. That means you can deposit $1,000 to trade assets worth $1,000,000 for potentially greater profit. The actual credit limit depends on your margin or collateral to cover the risks and the asset type.
With leverage, you can make significant profits much quicker when trades go well—but you can also lose just as quickly if the market moves against your expectations. That's why some traders might want to limit their leverage to lower the risk.
You can set the preferred leverage during the registration process. Customise the account manually and adjust it ranging from 1:1 to 1:1000. But it's not final: if you want to change the leverage, you can always change the ratio for each account separately in your profile later on.
To calculate the required margin and pip value of a trade, use our Trading calculator.
Islamic accounts on Octa: how they work
All trading accounts featured by Octa are swap-free and suitable for halal trading.
Islamic accounts are designed to comply with religious requirements for Muslim traders. Islam forbids any way of earning interest, including swaps. With swaps, you earn interest for keeping trades open overnight, so Islamic accounts must be completely swap-free.
Our accounts don't support swaps. We don't charge any fixed fees as well. That means you don't have to make a special Islamic account with Octa. Just create a trading account and enjoy all the benefits of an Islamic account.
Some Islamic scholars consider leverage trading unethical, too. If you share this view, you can create an account with no leverage. Just set your leverage to 1:1 during the registration process or at any time after. This way, you can trade only with your own funds and avoid borrowing money.
Verify your account to withdraw profits
To withdraw funds from your account, you need to verify your identity first.
- In your profile, go to the Settings menu—look for the cog icon next to your name in the upper right corner. Press Profile Verification.
- Upload photos of your identity document and press Submit Request. We will review your request and notify you via email when the process is complete. It usually takes about 1–2 office hours or less.
Once you receive the confirmation letter, you can start withdrawing funds.
Octa trading app: optimise your trading experience
The Octa app is our official mobile trading app. With it, you can manage accounts and make trades on the go. Use it to deposit and withdraw funds, browse market insights, and monitor all open positions without having to sit in front of the computer all day. It is free, user-friendly, and has everything you need to make your trading experience even more convenient and effective. It supports any account type and trading platform available with Octa.
How much does it cost to open a live trading account?
Nothing. Creating and maintaining an account with Octa is free: we do not charge deposit fees. But we have a minimum deposit amount: from $25, depending on the payment method.
How much does it cost to withdraw money?
Nothing. We do not charge withdrawal fees. But we have a minimum withdrawal amount: from $5, depending on the payment method.
Do I need to verify my identity to trade with Octa?
No, you can start trading right after you open a trading account and make a deposit. But you will have to verify your identity before you can withdraw any funds from your real trading account.
How much does Octa charge for trading?
We don't charge any fees or commissions. We offer tight spreads for trading instruments, including major currency pairs. Our spreads start at 0.6 pips for major currency pairs.
Does Octa feature cent accounts?
No, we do not have cent accounts. If you want to practise trading skills, create a demo account and trade in real market conditions with unlimited virtual funds.
Should I open a real or demo Octa account?
You can open both of them for free. Use your demo account to test new trading strategies or learn how to use certain analytical tools without risking your balance, then use your real account to earn a profit.
Does Octa feature any deposit bonuses?
Octa offers unlimited deposit bonuses of up to 50%. Such bonus funds are withdrawable, but you need to trade a certain number of lots before you can actually withdraw them.
How much money do I need to start trading?
The minimum deposit is $25, but we recommend starting with at least $100. With a 50% bonus, you get to trade with $150 right from the start.
-
Trading indices with OctaFX
Trading index derivatives with us
As one of the fastest-growing financial products on the market, index derivatives present a unique opportunity to earn from stock market fluctuations while also providing high leverage and flexible trading schedule. If you are already familiar with Forex trading, you may find indices to be an exciting market to explore.
While based upon similar principles, index trading differs from currency trading in some aspects. Below you will find all the information you need to start trading indices.
You can log in or open an account if you're ready to start. Otherwise, continue reading.
What are index derivatives?
An index is a statistical evaluation of how the price of a particular set of stocks has changed over time. It enables the assessment of a particular market's overall performance. Depending on the selection criteria, indices may be classified as national, global, industry-specific, or exchange-based. Moreover, various calculation methods subdivide them into price-weighted stock indices, value (or market cap) weighted indices, and equally-weighted stock indices.
- A price-weighted index is calculated by adding each stock's price and dividing it by the total number of stocks with more weight given to those with a higher price. The higher the price of a particular stock, the more it will affect the index. One of the most popular price-weighted indices is Dow Jones Industrial Average.
- In value-weighted indices, individual shares are weighted depending on market capitalisation. The larger the market value of a company's outstanding shares, the more influence its index has. NASDAQ and SPX500 are examples of widely used value-weighted indices.
- All stocks on an equal-weighted index have the same impact regardless of market capitalisation. There are equally weighted versions for several popular indices, such as the SPX500.
An index is a statistical value you cannot trade directly, so index trading does not involve placing orders for the underlying asset. However, you can profit from index fluctuations by buying and selling derivative securities as their price reflects the movements of the asset. Using micro lots and high leverage, any trader can earn from price fluctuations with a small deposit and low risk involved. Strategies vary depending on the instruments involved.
How to trade indices
Major stock market indices, such as FTSE 100, Dow Jones, SPX, and Germany's DAX index tend to respond well to technical analysis and are generally preferred by short-term traders. Other popular indices include France's CAC-40 and Japan's Nikkei 225.
Understanding whether an index responds well to technical analysis mainly depends on the country the index originates from and the economic sectors it represents. Below you will find a brief description of the major indices we offer for trading.
The Dow Jones Industrial Index
Symbol: US30
Trading hours: Monday to Friday, 1:00 a.m. to 11:15 p.m., 11:30 p.m to 12:00 a.m.
Thanks to the U.S. market’s volatility, the Dow Jones Industrial Index is one of the most popular instruments among traders. Composed of 30 major U.S. companies, Dow Jones provides a cross-section of the U.S. economy and, consequently, is affected by regional news releases.
The Standard and Poor's 500 Index
Symbol: SPX500
Trading hours: Monday to Friday, 1:00 a.m. to 11:15 p.m., 11:30 p.m to 12:00 a.m.
Another popular U.S. index is the Standard & Poor's 500, which reflects the shared values of the 500 largest companies in the United States. As it covers 70% of the stock market, SPX500 can be considered a better benchmark of the U.S. economy than Dow Jones.
The Nasdaq 100 Index
Symbol: NAS100
Trading hours: Monday to Friday, 1:00 a.m. to 11:15 p.m., 11:30 p.m to 12:00 a.m.
The NASDAQ 100 Index includes the 100 largest companies listed on the NASDAQ exchange and reflects several industries, including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. With these sectors' combined influence on the economy, you can expect the index to be significantly affected by the U.S. financial news.
The ASX 200 Index
Symbol: AUS200
Trading hours: Monday to Friday, 2:50 a.m. to 9:30 a.m., 10:10 a.m. to 12:00 a.m.
Based on the Sydney Futures Exchange (SFE) Share Price Index Futures contract, the Aussie 200 Index measures the movement of various sectors of the Australian Stock market. The index responds to economic news and reports from Australia. It is also affected by changes in commodity prices as the Australian economy depends on them.
Nikkei 225 Index
Symbol: JPN225
Trading hours: Monday to Friday, 2:00 a.m. to 11:00 p.m.
Often referred to as the Japanese Dow Jones equivalent, the Nikkei 225 is a stock index for the Tokyo Stock Exchange that includes Japan's top 225 companies, including Canon Inc., Sony Corporation, and Toyota Motor Corporation. As the Japanese economy is highly export-oriented, the index may be affected by some economic news from the U.S.
EURO STOXX 50 Index
Symbol: EUSTX50
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
The EURO STOXX 50, designed by Stoxx Ltd, is a capitalisation-weighted index made of the largest companies across several industries, including Siemens, SAP, Sanofi, Bayer, BASF, and others. The index covers 50 companies from 11 European countries, including Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.
DAX 40
Symbol: GER40
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
Another popular capitalisation-weighted index, the German DAX, includes the top 40 companies trading on the Frankfurt Stock Exchange, including BASF, SAP, Bayer, Allianz, and others. It is commonly believed to be a good market with substantial volumes, as it tends to have clear trends for several hours at a time with relatively small pullbacks. Like all major stock indices, DAX 40 usually responds well to technical analysis and is affected by economic news from Germany and the E.U.
IBEX 35
Symbol: ESP35
Trading hours: Monday to Friday, 10:00 a.m. to 6:30 p.m.
The IBEX 35, which maps the 35 most liquid Spanish stocks, is the benchmark stock market index of the Bolsa de Madrid. As a capitalisation-weighted index, it is based on the free float method, which means it counts the shares in public investors' hands instead of the restricted stocks held by company insiders. Some of the largest companies it consists of are BBVA, Banco Santander, Telefónica, and Iberdrola. However, it is essential to note that the list is reviewed and updated twice a year.
CAC 40
Symbol: FRA40
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
As another European free-float capitalisation-weighted index, the CAC 40 is France’s stock market benchmark. It represents the top 40 stocks traded on the Euronext Paris stock market. As France represents about a fifth of the eurozone economy, it might provide an insight into where the European market is heading and present an opportunity to profit from its price fluctuations. The CAC 40 covers stocks across multiple industries, including pharmacology, banking, and oil equipment.
FTSE 100
Symbol: UK100
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
Also called the footsie, the Financial Times Stock Exchange 100 is a market capitalisation-weighted index representing the top 100 blue-chip companies on the London Stock Exchange. The index maps more than 80% of the total capitalisation in the United Kingdom. Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index. The FTSE group manages the index, which is a joint venture between the Financial Times and the London Stock Exchange.
How to start trading?
The first step is to learn how to open an OctaFX MT4 or MT5 trading account. The MT4 and MT5 trading platforms offer up to 230 instruments, including the above indices, crude oil, and more. We don’t charge swaps or commissions and offer industry-leading spreads.
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Trading indices with Octa
Trading index derivatives with us
As one of the fastest-growing financial products on the market, index derivatives present a unique opportunity to earn from stock market fluctuations while also providing high leverage and flexible trading schedule. If you are already familiar with Forex trading, you may find indices to be an exciting market to explore.
While based upon similar principles, index trading differs from currency trading in some aspects. Below you will find all the information you need to start trading indices.
You can log in or open an account if you're ready to start. Otherwise, continue reading.
What are index derivatives?
An index is a statistical evaluation of how the price of a particular set of stocks has changed over time. It enables the assessment of a particular market's overall performance. Depending on the selection criteria, indices may be classified as national, global, industry-specific, or exchange-based. Moreover, various calculation methods subdivide them into price-weighted stock indices, value (or market cap) weighted indices, and equally-weighted stock indices.
- A price-weighted index is calculated by adding each stock's price and dividing it by the total number of stocks with more weight given to those with a higher price. The higher the price of a particular stock, the more it will affect the index. One of the most popular price-weighted indices is Dow Jones Industrial Average.
- In value-weighted indices, individual shares are weighted depending on market capitalisation. The larger the market value of a company's outstanding shares, the more influence its index has. NASDAQ and SPX500 are examples of widely used value-weighted indices.
- All stocks on an equal-weighted index have the same impact regardless of market capitalisation. There are equally weighted versions for several popular indices, such as the SPX500.
An index is a statistical value you cannot trade directly, so index trading does not involve placing orders for the underlying asset. However, you can profit from index fluctuations by buying and selling derivative securities as their price reflects the movements of the asset. Using micro lots and high leverage, any trader can earn from price fluctuations with a small deposit and low risk involved. Strategies vary depending on the instruments involved.
How to trade indices
Major stock market indices, such as FTSE 100, Dow Jones, SPX, and Germany's DAX index tend to respond well to technical analysis and are generally preferred by short-term traders. Other popular indices include France's CAC-40 and Japan's Nikkei 225.
Understanding whether an index responds well to technical analysis mainly depends on the country the index originates from and the economic sectors it represents. Below you will find a brief description of the major indices we offer for trading.
The Dow Jones Industrial Index
Symbol: US30
Trading hours: Monday to Friday, 1:00 a.m. to 11:15 p.m., 11:30 p.m to 12:00 a.m.
Thanks to the U.S. market’s volatility, the Dow Jones Industrial Index is one of the most popular instruments among traders. Composed of 30 major U.S. companies, Dow Jones provides a cross-section of the U.S. economy and, consequently, is affected by regional news releases.
The Standard and Poor's 500 Index
Symbol: SPX500
Trading hours: Monday to Friday, 1:00 a.m. to 11:15 p.m., 11:30 p.m to 12:00 a.m.
Another popular U.S. index is the Standard & Poor's 500, which reflects the shared values of the 500 largest companies in the United States. As it covers 70% of the stock market, SPX500 can be considered a better benchmark of the U.S. economy than Dow Jones.
The Nasdaq 100 Index
Symbol: NAS100
Trading hours: Monday to Friday, 1:00 a.m. to 11:15 p.m., 11:30 p.m to 12:00 a.m.
The NASDAQ 100 Index includes the 100 largest companies listed on the NASDAQ exchange and reflects several industries, including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology. With these sectors' combined influence on the economy, you can expect the index to be significantly affected by the U.S. financial news.
The ASX 200 Index
Symbol: AUS200
Trading hours: Monday to Friday, 2:50 a.m. to 9:30 a.m., 10:10 a.m. to 12:00 a.m.
Based on the Sydney Futures Exchange (SFE) Share Price Index Futures contract, the Aussie 200 Index measures the movement of various sectors of the Australian Stock market. The index responds to economic news and reports from Australia. It is also affected by changes in commodity prices as the Australian economy depends on them.
Nikkei 225 Index
Symbol: JPN225
Trading hours: Monday to Friday, 2:00 a.m. to 11:00 p.m.
Often referred to as the Japanese Dow Jones equivalent, the Nikkei 225 is a stock index for the Tokyo Stock Exchange that includes Japan's top 225 companies, including Canon Inc., Sony Corporation, and Toyota Motor Corporation. As the Japanese economy is highly export-oriented, the index may be affected by some economic news from the U.S.
EURO STOXX 50 Index
Symbol: EUSTX50
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
The EURO STOXX 50, designed by Stoxx Ltd, is a capitalisation-weighted index made of the largest companies across several industries, including Siemens, SAP, Sanofi, Bayer, BASF, and others. The index covers 50 companies from 11 European countries, including Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.
DAX 40
Symbol: GER40
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
Another popular capitalisation-weighted index, the German DAX, includes the top 40 companies trading on the Frankfurt Stock Exchange, including BASF, SAP, Bayer, Allianz, and others. It is commonly believed to be a good market with substantial volumes, as it tends to have clear trends for several hours at a time with relatively small pullbacks. Like all major stock indices, DAX 40 usually responds well to technical analysis and is affected by economic news from Germany and the E.U.
IBEX 35
Symbol: ESP35
Trading hours: Monday to Friday, 10:00 a.m. to 6:30 p.m.
The IBEX 35, which maps the 35 most liquid Spanish stocks, is the benchmark stock market index of the Bolsa de Madrid. As a capitalisation-weighted index, it is based on the free float method, which means it counts the shares in public investors' hands instead of the restricted stocks held by company insiders. Some of the largest companies it consists of are BBVA, Banco Santander, Telefónica, and Iberdrola. However, it is essential to note that the list is reviewed and updated twice a year.
CAC 40
Symbol: FRA40
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
As another European free-float capitalisation-weighted index, the CAC 40 is France’s stock market benchmark. It represents the top 40 stocks traded on the Euronext Paris stock market. As France represents about a fifth of the eurozone economy, it might provide an insight into where the European market is heading and present an opportunity to profit from its price fluctuations. The CAC 40 covers stocks across multiple industries, including pharmacology, banking, and oil equipment.
FTSE 100
Symbol: UK100
Trading hours: Monday to Friday, 9:00 a.m. to 11:00 p.m.
Also called the footsie, the Financial Times Stock Exchange 100 is a market capitalisation-weighted index representing the top 100 blue-chip companies on the London Stock Exchange. The index maps more than 80% of the total capitalisation in the United Kingdom. Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index. The FTSE group manages the index, which is a joint venture between the Financial Times and the London Stock Exchange.
How to start trading?
The first step is to learn how to open an OctaFX MT4 or MT5 trading account. The MT4 and MT5 trading platforms offer up to 230 instruments, including the above indices, crude oil, and more. We don’t charge swaps or commissions and offer industry-leading spreads.
Open account