Forex indices trading
Spread bet or trade CFDs on baskets of FX pairs with our range of 12 forex indices, including the CMC USD Index, the CMC GBP Index and the CMC EUR Index.
These indices offer you a unique way to trade on a group of FX pairs which share the same base currency, giving you exposure to multiple currencies in just one trade. The indices can also provide a benchmark overview for the international value of a currency.
Forex indices details
We offer 12 different forex indices. Each is made up of a range of currency pairs with the same base currency. So the CMC USD Index, for example, is made up of a collection of US dollar pairs.
Our full range of forex indices is listed below, along with the applicable spreads. Margin rates are 5% for all forex indices, which are tradeable from midnight until 10pm, Monday to Friday.
| CMC USD Index Spread from: 0.25pts | CMC GBP Index Spread from: 0.3pts | CMC EUR Index Spread from: 0.25pts |
| CMC AUD Index Spread from: 0.3pts | CMC CAD Index Spread from: 0.3pts | CMC CHF Index Spread from: 0.3pts |
| CMC CNH Index Spread from: 0.3pts | CMC JPY Index Spread from: 5pts | CMC NOK Index Spread from 0.6pts |
| CMC NZD Index Spread from: 0.5pts | CMC SEK Index Spread from: 0.6pts | CMC SGD Index Spread from: 0.3pts |
The benefits and risks of forex indices
There are several benefits to forex indices trading as opposed to trading individual currencies.
Firstly, it can be a more cost-effective and efficient way of trading the market, as it allows you to take a view on one area of the forex market, without having to open a position on each individual FX pair. Likewise, this can be a good way to diversify your portfolio, as for example, while geopolitical issues could particularly affect one currency pair in the index, the others may remain unaffected.
Forex indices trading can also be used as a way to hedge any unfavourable moves in a particular currency, and are a good way to spread your risk, as you are exposed to a wider range of instruments rather than just one currency pair. It's important to be aware that spread bets and CFDs are high-risk, speculative products. High volatility combined with leverage could lead to significant losses.
As with any leveraged product, both profits and losses are magnified as they are based on the full value of your position, not just your initial deposit on a particular trade. While you could make a profit if the market moves in your favour, you could also make a loss if the trade moves against you, particularly if you don’t have adequate risk-management cover in place.
How forex indices work
Our forex indices group together individual FX pairs with the same base currency to make a forex ‘basket’. The indices track the underlying prices of the currency pairs within that index. If the individual forex prices in that index increase, then the value of the index will go up. Conversely, if the individual FX prices decrease, then the value of that index will fall.
How our forex indices are weighted
Our forex indices were created with a base level price of 1,000 for the USD, GBP, EUR, AUD, NZD, CAD, CNH, CHF, SEK, NOK and SGD indices, and a base level price of 20,000 for the JPY index, as of 31 December 2018.
The weighting of each index component is capped at 40% of the total trade volume.
Forex indices methodology [pdf]
CMC forex index and currency percentage weightings
| USD | GBP | EUR | AUD | CAD | CHF | CNH | JPY | NOK | NZD | PLN | SEK | SGD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CMC USD Index | 5.56 | 28.60 | 1.63 | 25.18 | 3.35 | 24.59 | 8.21 | - | - | - | - | 2.86 | |
| CMC GBP Index | 21.91 | 40.00 | - | 3.26 | 3.91 | 17.90 | 2.73 | 7.94 | - | - | 2.35 | - | |
| CMC EUR Index | 22.70 | 13.13 | 1.51 | 2.34 | 8.10 | 23.03 | 3.90 | 5.55 | - | 12.23 | 5.94 | 1.58 | |
| CMC AUD Index | 11.20 | 1.94 | 12.51 | - | 1.39 | 40.00 | 24.91 | - | 2.66 | - | - | 5.40 | |
| CMC CAD Index | 40.00 | 5.07 | 17.90 | 1.00 | 2.66 | 26.08 | 6.42 | 0.87 | - | - | - | - | |
| CMC CHF Index | 23.84 | 7.05 | 40.00 | 1.44 | 3.09 | 17.41 | 3.33 | - | - | - | - | 3.86 | |
| CMC CNH Index | 28.37 | 5.24 | 31.18 | 8.83 | 4.91 | 2.82 | 14.81 | - | - | - | - | 3.84 | |
| CMC JPY Index | 24.94 | 2.10 | 14.55 | 11.02 | 3.18 | 1.42 | 38.97 | - | - | - | - | 3.82 | |
| CMC NOK Index | 5.72 | 25.34 | 40.00 | - | 1.78 | 0.62 | 9.01 | 1.41 | - | - | 16.12 | - | |
| CMC NZD Index | 14.11 | 3.06 | 12.63 | 15.45 | 1.92 | - | 39.21 | 8.77 | - | - | - | 4.83 | |
| CMC SEK Index | 13.15 | 9.29 | 40.00 | 1.31 | - | 1.53 | 12.40 | 2.39 | 19.93 | - | - | - | |
| CMC SGD Index | 25.37 | 3.20 | 18.05 | 6.96 | 1.01 | 4.80 | 29.48 | 11.13 | - | - | - | - |