IG offers its clients to trade its new Hong Kong Tech Index
Electronic trading major IG is offering its clients to trade the new Hong Kong Tech Index. This way, traders can take a position on top indices constituents like Alibaba, JD.com, Tencent and more.
The broker offers Mini contracts of US$1, with margin as low as 3%. Traders can go long or short with deeper liquidity.
Indices are a measurement of the performance of a group of shares that are listed on an exchange. Because there is no underlying physical asset to exchange when trading indices, most indices trading is done with financial derivatives like CFDs.
How to trade indices?
- Create an IG trading account
- Research an index you want to trade
- Decide how you want to trade
- Take steps to manage your risk
- Open and monitor your position
The list of benefits of index trading includes the traders’ ability to speculate on a group of shares for less than the cost of trading them individually. Traders can also get exposure to an entire sector or economy at once. In addition, they can hedge against a drop in the value of their share portfolio.
Speaking of indices, let’s note that IG has also recently added inflation indices to its offering. The inflation indices contain a selection of gilt and TIPS ETFs that have a correlation with IG’s 5-year UK or US inflation-linked bond yields, a commonly used benchmark for forward looking inflation expectations.
IG offers a UK Inflation Index and a US Inflation Index. Both are provided by BITA and priced according to the weight of their constituents.