An index CFD is a contract that allows you to trade the global stock indices such the world renown US Wall Street 30 index, NASDAQ, and German Dax index.
Index CFDs work in the same way as your normal CFDs, namely by mirroring the price oscillations of the exchange-quoted related future. The price-movement of the Index CFD tracks the movement of the related future, and the difference between the current value and its value at a future time is exchanged into your account in the form of variation margin.
A commodity CFD allows you to trade previous metals, energies, and soft commodities ranging from gold, silver, and crude oil to Coffee, Cocoa, and Sugar.
Commodities are a great asset to diversify an investor’s portfolio. The price fluctuation is mainly dependent on the supply and demand of the whole world.
The price-movement of the commodity CFD tracks the movement of the related instrument so you can maximize your positions by trading on leverage, and it is a great way to diversify your investments or hedge against inflation.