Trade the ASX 200 Index / SPI Futures CFD

Trade the ASX 200 Index / SPI Futures CFD

Trading the ASX 200 index CFD allows you to take advantage of both the rise and fall of the top 200 stocks on the Australian Securities Exchange (ASX).

Sudden and unexpected movements in stocks occur every day, especially around ASX 200 index reporting season. Also, news announcements can often cause severe market volatility and catch us, and our stocks, completely off guard. If you are not careful, these sudden movements can result in substantial losses to your bottom line.

As a result, many traders transition to trading the ASX 200 index, also known as the Australia 200 index.

Instead of scanning for trading opportunities across the wide range of stocks on the ASX, index trading means you focus on one instrument – the Australia 200 Index CFD. Trading the Australia 200 index gives you access to the movements of the top 200 ASX stocks, but without having to analyse all 200 stocks individually.

What is the ASX 200 Index?

Firstly, an index is a term used to describe a grouping of financial instruments used as a performance indicator of a particular sector.

The ASX 200 index is made up of the top 200 Australian stocks. Each stock has a specific weighting on the index, such that the larger the company, the greater the overall weighting. A market heavyweight like Commonwealth Bank (market capitalisation of around $125 billion as of June 2018) would account for a large portion of the overall index movement. Whereas a stock like Bellamy’s (market capitalisation of around $2 billion as of June 2018) would have little influence in moving the ASX 200 index.

Indices are not traded directly with the ASX but are instead done so through derivative products such as CFDs and futures. Trading the Index allows you to invest in the assets (top 200 stocks which make up the index), without having to buy every single stock.


How Can the ASX 200 be Traded?

You can trade the Australia 200 index in two ways with TradeDirect365;

  1. Trading the Australia SPI Direct CFD
  2. Trading the Australia 200 CFD

Check out our Video about Trading the ASX 200 Index & SPI Futures CFD;


The Australia 200 Index CFD

The Australia 200 CFD is one of our most actively traded indices, especially for Australia-based traders. You will hear people refer to this product as the cash index.

One of the standout advantages of trading the ASX 200 index CFD with TradeDirect365 is our fixed 0.9 point spread during the live Australian trading session. There is a 2-point fixed spread after hours which can often be significantly less than the underlying futures contract.

With no commission and the tightest fixed spreads in Australia, it is a great way to take advantage of movements in the Australian 200 Index.


The Australia SPI Direct Futures CFD

The advantage of trading the SPI Direct CFD is minimal margin is required to open a position. In fact, you only need a fraction of the margin required if you were to trade the SPI futures contract. Trades on the Australia SPI Direct CFD can also be executed in much smaller increments than a full contract size. You can trade for as little as $1 per point movement. There is no SPI Index Trading CFD product in Australia that comes close to the benefits of our SPI Direct CFD offering.


7 Benefits of Trading the ASX 200 Index with TradeDirect365 

  • Tight, Fixed spreads: trade our Australia 200 index with a fixed spread of 0.9 points during AEDT market hours. Most CFD brokers are at 1+ point spreads.
  • Low-Cost Trading: you can test your trading system at $0.90 per point instead of $25 per ASX Futures contract
  • No Commissions: we do not charge commission on ASX 200 CFD trades
  • We are ASIC-Regulated: TradeDirect365 is a trading name of Finsa Pty Limited (ACN 158 065 635 and AFSL No. 422661)
  • Simple Trading Platform: our trading platform is simple, fast and efficient – Find out more about our trading platforms here.
  • Go long or short: trade your view by buying or selling the Australia 200
  • GSLO: you can trade with a guaranteed stop, providing you with excellent risk management tools.


Australia 200 Index CFD Specifications

  • Trading hours: opens Sunday to Friday 22.50 to 21.00. Closed periods during the week at 05.30 to 06.10 & 21.00 to 22.50
  • Fixed spread during hours: 0.9 points
  • Out-of-Hours Spread: 2 points
  • Expiry date: None
  • Contract months: Rolling
  • Margin required: 5% for RetailTraders (Leverage of 20:1) or 0.5% for Professional Traders (Leverage of 200:1)
  • Guaranteed Stop-Losses: Yes
  • Guaranteed Stop Distance: 2%
  • $0 Commission (No Commission)


The Australia SPI Direct CFD Specifications

  • Trading hours: opens Sunday to Friday 22.50 to 21.00. Closed periods during the week at 05.30 to 06.10 & 21.00 to 22.50
  • Spread during hours: 1.4 points
  • Out-of-Hours Spread: 2.4 points
  • Expiry Date: ASX Official Settlement Price
  • Contract months: Quarterly
  • Margin required: 5% for RetailTraders (Leverage of 20:1) or 0.5% for Professional Traders (Leverage of 200:1)
  • Guaranteed stops allowed: Yes
  • Guaranteed stop distance: 2%
  • Commission from: $5

Considerations when Trading the Australia 200 Index CFD

When trading the Australia 200 index, there is an overnight financing cost. This means your account will be debited every day you hold the position past the New York close.

You will also need to consider any dividends which may be paid on the stocks within the index. If one of the ASX 200 stocks pays a dividend, then you will receive a credit if you are long the index. If you are short, then you will be debited at a pro-rata rate. Any debits and credits are clearly highlighted within your activity history tab within the TradeDirect365 platform.

You can find the expected Dividend Adjustments posted each week on the TradeDirect365 Dividend Projections page.

Charting the Australia 200 Index CFD

Charting the Aussie 200 Index CFD on TradeDirect365 is very easy. You will notice a chart icon beside each instrument. Click on that to view the chart.

The TD365 platform provides you with everything you need when performing technical analysis across the chart. Not only is it fully featured, but it is very easy to use.

An example chart of the Australia 200 Index is shown below. Here you can see a candlestick chart with a 100 period simple moving average in yellow. In this example, we have chosen a daily chart.

TradeDirect365 chart of the Aussie 200 Index


Trade Your View on the Australia 200 Index Today

You might already have a view on what you believe the short-to-medium term view is for the Aussie 200. Why not put your analysis to the test and open a trade today?