The Aussie 200 Index CFD is good for practising and developing your day trading skills, as owning one contract is equal to one dollar per point. Once you have a good understanding and feel for where the market is expected to move in a session, and have your keyboard skills perfected, you’ll be on your way.
 |
|
 |
|
CMC Markets’ Aussie 200 Index CFD is based on the Sydney Futures Exchange (SFE) Share Price Index futures contract, known as the SPI. In turn, the SPI is based on the S&P ASX 200 – also known as the Cash Market.
While the Aussie 200 CFD is a very popular trading instrument in its own right, it can also offer you the ability to change the overall weighting of your total portfolio very swiftly.
Imagine you believed there was going to be a short term fall in the market. You would be able to go a long way to defending the value of a well diversified portfolio by taking on short exposure through the use of this index CFD. Depending on the timeframe of your investment, you may choose to hedge a small part of your portfolio (or something a bit larger), but it could be a valuable addition even if it just allows you to take some of the sting out of market falls.
