October 31, 2024 01:21 AM
Overview
Costs & Margins
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The FTSE China A50 is a stock index that tracks 50 major stocks on listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange. It is seen as the Chinese mainland’s benchmark index.
The index only considers A-Share companies, and weights them by market cap – which means that stocks with a greater overall value have a greater influence on its price movements. Some important constituents include Kweichow Moutai, Ping An Insurance and China Merchants Bank.
Like many other FTSE indices, the A50 is free-float adjusted and screens stocks by their liquidity before considering them for inclusion.
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Margin From10.0 %
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Trading Hours24 hours / day *
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Min Trade Size1
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Long0
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Short0
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Min Stop Distance0.0 Points
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Guaranteed Order Minimum20.0 Points
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Guaranteed Order Premium8.0 units of quantity
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Spreads
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Spreads From9 Points
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Margins
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0 - 17010.0 %
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170 +20.0 %
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Dealing
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Spreads9 Points
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Guaranteed Order Min Distance20.0 Points
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Margins
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0 - 17010.0 %
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170 +20.0 %
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Indices explained
What are indices used for?
Indices are used in a variety of ways by traders. They can give an instant idea of how a country’s economy is performing, can provide a useful way of assessing multiple stocks at once and provide lots of powerful trading opportunities.
Indices were created for the purpose of evaluating the performance of a stock market. If an index is rising, it means that the stocks it represents are moving up overall, generally a sign that businesses are doing well and economic health is strong. A falling index, on the other hand, is a signal that stocks are struggling, which may hint at deeper problems within an economy.
Stock indices are still used for this purpose today, but they’re also a popular asset class in their own right. It isn’t hard to see why – they enable you to take your position of the biggest stocks in an economy with a single trade, as well as offering high volatility and liquidity.
Learn more about how indices work.
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What is a benchmark index?
A benchmark index is a group of stocks that is used as a measure of the market as a whole. Most of the major indices you’ve heard of are benchmarks: including the S&P 500 (US 500), Dow Jones (Wall Street) and FTSE 100 (UK 100).
Benchmark indices are useful to traders as a way to compare an individual security against the wider market. For example, say that you’ve found a US stock that has grown 20% over the past four years. You might compare that growth to the S&P 500 to see how it fares against 500 of the biggest US stocks.
If the S&P 500 has grown 40% over the past four years, then your stock has actually underperformed the wider market.
Learn more about indices.
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What's the best way to trade indices?
There are multiple ways to trade indices, including via futures, options and CFDs. Each has its own benefits and drawbacks, so it’s worth doing your research to decide which works best for you.
Trading index CFDs with City Index, for example, enables you to go long or short on 21 major global indices. Trading index options, on the other hand, gives you access to advanced strategies such as straddles and strangles.
You can use your City Index account to trade CFDs on indices and index options. Open your trading account now.
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