How to trade indices on MT5 in 2023
BY Chris Andreou
|dicembre 15, 2021Are you interested in trading indices on MT5 in 2023?
This article will;
- Explain what indices are and why you should trade them.
- Inform you how to trade indices on the MT5 trading platform.
By the end of this article you will have a better understanding of how to trade indices on MT5 in 2023.
You will find this even more useful, if you already have a basic understanding of trading.
So let’s get started.
You can start trading indices in 2023 exclusively or as a complement to your trading. A good place to start is to better understand what indices are.
What we refer to as indices is otherwise known as an index that is made up of individual stocks. The indices price is calculated from the underlying prices of the constituent stocks that make up the index.
Some common indices you can trade on the MT5 platform are:
- The Dow jones industrial averages
- The S&P 500
- The Nasdaq
These three indices are very popular US indices.
Other popular indices, which are outside the US, are as follows:
- The German DAX
- The FTSE 100 for the top 100 companies listed on the London Stock exchange.
- The Spain stock market index or the ES35.
- The Japanese Nikkei, that tracks the top 225 listed companies on the Tokyo stock exchange.
- The Hang Seng index for companies listed on the Hong Kong stock exchange
- And the ASX200 index from Australia.
This is to name just a few.
If you want exposure to the broader stock market from these regions, you should start trading indices on MT5 in 2023. However there are some important things you should be aware of before doing so.
The first thing is that Indices are generally volatile.
The second thing is that the same lot size or volume for an indices trade can vary between brokers.
It is best to check the contract’s specification before you start trading.
What you should be interested in are the times when the indices are open for trading, the costs involved and how much will be bought or sold for the lot size you select to trade on MT5 platform.
It costs $5 per lot in commissions to trade on the TIOMarkets Standard Account type. By choosing the flagship account type the VIP Black, this cost reduces down to $0 commissions per lot.
Remember to take note of the spread, as this also needs to be taken into account as a cost of trading. You will need to check within your Metatrader platform to see the live spreads of your chosen trade.
There are other costs involved too, such as swaps. A swap fee is applied for each trading day that you maintain your indices position. This is basically a financing charge, and only comes in to effect when you roll over your positions to the next trading day.
The swaps are calculated in points on the MT5 platform and the amount depends on the lot size you trade.
I am going to talk a little more about that now.
0.1 lots in trading volume on TIO Markets MT5 platform is 1 indices contract. When you trade 1 contract, a full tick in the price of the indices will be worth 1 unit of whatever currency the indices are denominated in.
US indices are denominated in US Dollars; European Indices are denominated in Euro, and so on.
To open the trade, you only need 1% of the value of the contract in your account as margin.
One of the good things about trading indices is that there are fewer symbols to focus on which can make your trading more manageable.
Furthermore, you can start trading indices with TIO Markets on MT5 with as little as $50. However, consider capitalizing your account adequately for the lot sizes you intent to trade.
This is how to trade indices on MT5.
- Decide which indices you want to trade.
- Pick a direction, buy or sell.
- Decide on your risk and forecast your potential profit objective.
- Determine how much to buy or sell.
- Execute your market or pending order on MT5.
You need a funded trading account in order to start trading indices on MT5.
Open your account to start trading indices
- Visit www.tiomarkets.com to log in or register your account.
- From your secure client portal, click the button to open a live trading account. Configure the trading account according to your preference and choose MT5 as the trading platform.
- You will receive an email with the log in details.
- Download MT5 from the download centre, you need that installed on your computer or smartphone to log in and trade.
- Once you have done that, click on the deposit button to fund your TIO Markets wallet. Then transfer the funds from your TIOmarkets wallet to the MT5 trading account you just created.
That’s all you need to do to start trading indices on MT5 in 2023.
Take the next step, open your MT5 trading account and start trading indices with a reputable broker.
Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & OFAC. The Company holds the right to alter the aforementioned list of countries at its own discretion.
Experienced independent trader
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Trade responsibly: CFDs are complex instruments and come with a high risk of losing all your invested capital due to leverage.