What an index CFD is
A stock index is a number calculated from the prices of a group of shares, such as the Nasdaq-100 or the Dow Jones. You cannot buy the index itself. It is only a measurement.
A CFD (contract for difference) is an agreement with a broker to exchange the difference in price between the moment you open a position and the moment you close it. An index CFD applies this to an index. You do not own any shares. You only take a position on whether the index value will rise or fall.
Index CFD trading is leveraged. You put up a margin deposit that is only part of the full position value. Gains and losses are calculated on the full value, so leveraged CFD trading can lose money fast, including more than you expected from a small move.
Index vs index CFD vs futures vs ETF
| Product | What you hold | Where it trades | Expiry | Typical costs |
|---|---|---|---|---|
| Index | Nothing (it is a calculation) | Not tradable | None | None |
| Index CFD | A contract with the broker | Broker's platform (OTC) | Usually none for cash CFDs | Spread, possible commission, overnight swap |
| Index future | A standardised exchange contract | Futures exchange | Fixed expiry dates | Exchange and broker fees, roll costs |
| Index ETF | Fund units that hold the shares | Stock exchange | None | Fund management fee, brokerage |
The main differences: an ETF is ownership of a fund, usually without leverage. A future is an exchange contract with a fixed size and expiry. A CFD is an off-exchange contract with the broker, with flexible lot sizes and leverage.
Cash vs futures-based index CFDs
There are two common ways brokers price index CFDs:
- Cash (spot) CFDs follow the current underlying index value. They have no expiry. Holding a position past the daily rollover usually means an overnight financing charge or credit, called a swap.
- Futures-based CFDs follow the price of an index futures contract. They have an expiry date and either close or roll to the next contract. Financing is built into the futures price, so there is usually no separate daily swap, but spreads can be wider.
Whether a given Exness index is priced as cash or futures-based is not covered by our sources. Check the specification in the platform. For USTEC, Exness lists the swap as: triple swap on Friday. For swap rules in general, see Swap fees.
Dividend adjustments
When companies in an index pay dividends, the index value drops on the ex-dividend date. A cash index CFD follows that drop. To keep things fair, brokers often apply a dividend adjustment:
- Buy (long) positions usually receive a credit.
- Sell (short) positions usually receive a debit.
The adjustment appears on the account as a separate entry. How Exness handles dividend adjustments on indices is not in our sources. Check the current conditions in the Exness personal area or on the official site.
Contract size and value per point
The contract size says how many units of the index one lot represents. The value of each point of movement is:
Value per point = contract size × lots
The result is in the instrument's quote currency. Profit or loss is then:
Profit or loss = (close price − open price) × contract size × lots (reverse the sign for a sell)
For the Nasdaq-100, Exness uses the symbol USTEC. The listed contract sizes are: USTEC: 1, USTEC_x100: 100. The pip size is 0.1, and the minimum trading volume is 0.05 lot, USTEC_x100: 0.01 lot. For other indices, check the specification in the platform before trading. Contract sizes differ between instruments.
Use the calculator below to see the result of a closed trade in money and pips:
Fill in the empty fields to see the result.
Margin with fixed leverage at Exness
Margin is the deposit the broker holds while a position is open. The general formula is:
Margin = contract size × lots × price ÷ leverage
With fixed leverage, the ratio does not change with your account equity. Exness states that leverage is fixed for most indices except JP225, USTEC, USTEC_x100, US500, US500_x100, US30, US30_x10. The listed exceptions use dynamic leverage. Exness lists this change as: US30, US500, USTEC, JP225 (+x10/x100): from 400 to unlimited, planned for 7 November 2026; rollout dates may change. For those instruments, maximum leverage is 1:Unlimited if eligible, depending on your eligibility.
Margin can rise during high margin requirement (HMR) periods. For the US indices and JP225, Exness lists: US30/USTEC/US500/JP225 during HMR: 1:400 (0.25%) at the daily break, 1:50 (2%) over the weekend. Positions opened near these periods need more margin, and a margin shortfall can lead to a stop out.
Check the leverage value for your index in the platform specification, then calculate the margin required to open a position:
Fill in the empty fields to see the result.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Trading hours and practical points
- Hours: Exness says index trading hours differ by underlying instrument; servers run on UTC+0. Check the schedule for each index in the platform.
- Gaps: indices can open at a very different price after a break or the weekend. Stop orders may fill worse than their set level.
- Costs: compare the spread, any commission, and the swap before holding a position overnight. See Account types.
- Risk control: size positions from the money you can afford to lose, not from the maximum leverage. See Risk management.
Legal position in Pakistan
Before using any offshore broker, read what Pakistani regulators say. On residents' purchases, per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947. On offshore platforms, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Details are on Law and regulators.
For individual indices, see Stock indices, USTEC (US Tech 100), US30 (Dow Jones) and US500 (S&P 500).
Frequent questions
What are index CFDs in simple words?
They are contracts with a broker that pay or charge the difference in an index's value between opening and closing. You do not own any shares.
How do index CFDs work with leverage?
You deposit margin, which is only part of the position value. Profit and loss are calculated on the full value, so losses can build quickly.
Do I receive dividends on an index CFD?
Not as a shareholder. Brokers often apply dividend adjustments instead. Check Exness's current conditions in the personal area or on the official site.
Is USTEC the same as NAS100 or US100?
They are different broker names for the Nasdaq-100. Exness uses USTEC.
Is index CFD trading the same as buying an ETF?
No. An ETF gives you ownership of fund units, usually without leverage. A CFD is a leveraged contract with no ownership.
Where do I find the exact contract size and leverage?
In the instrument specification in the trading platform. Check it before every new instrument, because conditions can change.
