Cfd & Indices

Cfd & Indices

What is CFD?
CFD is an investment instrument which means Contract for Difference, ie a difference contract. Although the history of CFD markets is not as deep as the pair of parity, these markets have been developing since the 1990s. In investments made in difference contracts, the underlying asset is not physically owned.

CFD; The difference between the opening price and the closing price of the underlying asset is the financial investment type in which the current difference is calculated according to the opened position direction and reflected on the platform as plus or minus. In investments made in CFD, the underlying asset is not physically owned. The most commonly used CFD products include stock indices, commodities and Forex contracts.

 

What are the general characteristics of CFD?

1.Payment Interest

If the positions traded from the difference contracts written on the stock or indices are carried to the next day, the interest is charged or paid based on the position of the investor (long or short).

2.Shipping

All difference contracts are written on a underlying asset. The price in the difference contracts is in correlation with the underlying asset price.

Although the difference agreements can be traded on the basis of the maturity date of the underlying asset, there is also the possibility to be traded on the spot market price. The difference agreements written on the shares do not have a certain maturity. In other words, spot market price is directly reflected to the investor in the difference contracts where the underlying asset is a stock.

WHAT IS INDICES?

The indices is a collection of data such as price, cost, sales and production which belong to a certain period of time. Stock market indices are the main indicators used to measure the price and return performance of transaction stocks in the stock exchange. Indices can be made on a sectoral basis as well as in a holistic way. Thus, the performance of both the stock and the sectors as well as the economy are monitored.

 

WHAT IS A BORSA INDICES, WHAT ARE THE POPULAR BORSA INDICES?

The stock indices is the value that contains certain stocks and is calculated by calculating these stocks with different weights. The indices value of each share varies according to the weight of the stock. Stock market indices; by measuring the price movements of stocks, it also determines the general trend of the stock exchange.

The most active stock indices in terms of transaction volume in the world are Dow Jones, Nasdaq, S & P 500, FTSE and DAX.

Under the umbrella of the Istanbul Stock Exchange in Turkey there are multiple indices. The most transactions in Borsa Istanbul are the indices; BIST100 indices, BIST30 indices and BIST Banking indices are followed.