An index is a calculated benchmark that tracks a selected group of securities. IHSG reflects the broad Indonesian equity market, while LQ45 and IDX30 focus on smaller groups of liquid, large-cap shares. US500, US100, and US30 refer to different US benchmarks and are not interchangeable.
A trader cannot buy an index calculation directly. Exposure is obtained through a product such as an exchange-traded fund, an index fund, a futures contract, an option, or a contract for difference. Each route has different ownership rights, costs, leverage, trading hours, and counterparty arrangements.
JustMarkets offers CFDs linked to global equity indices. A CFD symbol such as US500 is a broker contract that follows the movement of a reference benchmark; it does not provide ownership of the index constituents, an ETF, or an exchange-traded futures contract. Indonesian indices such as IHSG, LQ45, and IDX30 are useful for understanding the concept, but they are not listed among the current JustMarkets index CFD symbols.
Direct answer
Indices trading means taking exposure to the movement of a stock-market benchmark through a tradable product. Before opening a position, identify the underlying index, the product being traded, the broker symbol, the contract size, the point value, the margin requirement, and the applicable trading session.
What Is a Stock Index?
A stock index is a statistical measure designed to represent the performance of a defined market or segment. An index provider selects eligible securities, applies a published methodology, assigns weights, and periodically rebalances the constituent list. The index level then rises or falls according to the weighted movement of its components.
An index is therefore not a company and does not have its own shares. It is a benchmark. Two indices covering the same country can move differently because they include different companies, use different weighting methods, or concentrate on different sectors.
| Term | Meaning | Example |
| Constituent | A security included in the index | A listed company included in IHSG or S&P 500 |
| Weight | The influence assigned to a constituent | A larger company may have a greater effect in a market-cap-weighted index |
| Index provider | The organisation that owns and maintains the methodology | IDX, S&P Dow Jones Indices, or Nasdaq Indexes |
| Rebalancing | A scheduled review of constituents and weights | A company may be added, removed, or reweighted |
| Benchmark | A reference used to evaluate a market or portfolio | IHSG for the broad Indonesian stock market |
IHSG, LQ45, and IDX30: Indonesia’s Familiar Benchmarks
Indonesia provides a useful starting point for understanding index construction. The IDX Composite, commonly called IHSG or JCI, is a broad benchmark for shares listed on the Indonesia Stock Exchange. LQ45 and IDX30 are narrower indices designed around liquidity, market capitalisation, and other eligibility criteria.
| Index | What it represents | Practical interpretation |
| IHSG / IDX Composite | A broad measure of the Indonesian equity market | Useful as a headline indicator of the overall IDX market |
| LQ45 | Forty-five highly liquid shares with large market capitalisation and supporting fundamental criteria | A liquid large-cap segment rather than the entire market |
| IDX30 | Thirty selected shares with relatively high liquidity, large market capitalisation, and fundamental quality | A more concentrated benchmark than LQ45 |
| IDX80 | A wider group of liquid shares | Broader liquid-market exposure than LQ45 or IDX30 |
| JII | A selection of sharia-compliant shares under the relevant methodology | A segment benchmark, not a substitute for IHSG |
A stronger IHSG does not mean every Indonesian share is rising. Large-weight constituents can offset weakness in smaller companies. Similarly, LQ45 or IDX30 can outperform or underperform the broader market because their constituent universe is different.
Can an Index Be Bought Directly?
No. The index number itself is not a security that can be transferred to an investor. Market participants use products designed to track or reference the index.
| Route | What the user receives | Typical characteristics |
| Replicating the basket | Ownership of multiple individual shares | Operationally complex and requires periodic rebalancing |
| Index fund | Units in a pooled fund | Designed for longer-term tracking; pricing and dealing rules depend on the fund |
| Index ETF | Ownership of exchange-traded fund units | Trades on an exchange and usually charges a fund expense |
| Index futures | A standardised exchange-traded derivative | Has contract specifications, expiry, clearing, and roll considerations |
| Index options | Contractual rights based on the index or a related product | Time value, strike price, and expiry materially affect risk |
| Index CFD | A broker-issued contract based on price movement | No ownership; margin, spread, swap, and counterparty risk may apply |
Index, Product, and Broker Symbol Are Different Layers
| Layer | Example | What it is |
| Index | S&P 500 | A calculated benchmark maintained under a published methodology |
| Index provider | S&P Dow Jones Indices | The organisation responsible for the methodology and administration |
| ETF | An exchange-traded fund tracking the S&P 500 | A fund security that can be owned |
| Futures contract | An exchange-listed S&P 500 futures contract | A standardised derivative with expiry and clearing |
| Broker CFD symbol | US500 | A contract offered by a broker and linked to a reference market |
| Platform label | US500 displayed in MT4 or MT5 | The name shown in the trading terminal for the broker’s instrument |
This distinction prevents a common error: opening US500 does not mean buying the shares of 500 companies. The trader holds a CFD position governed by the broker’s specification and client agreement.
How Weighting Methodology Changes Index Behaviour
The number of constituents is only one part of an index. Weighting determines how strongly each company affects the result.
| Reference index | Constituents | Weighting concept | What this means |
| S&P 500 | 500 leading US companies | Float-adjusted market capitalisation | Large companies have greater influence, but the index remains broad across sectors |
| Nasdaq-100 | 100 large non-financial Nasdaq-listed companies | Modified market capitalisation | The index is concentrated in growth and technology-related businesses and excludes financial companies |
| Dow Jones Industrial Average | 30 US blue-chip companies | Price weighted | A higher-priced share can have more index influence even when its total company value is smaller |
| IHSG / IDX Composite | Broad Indonesian market | Market-capitalisation-based methodology | Large IDX companies have greater influence on the headline market benchmark |
US500 vs US100 vs US30
US500, US100, and US30 can be highly correlated because they all reference US equities, but they are not three versions of the same trade.
| Symbol | Reference benchmark | Main exposure | Common sensitivity |
|---|---|---|---|
| US500 | S&P 500 | Broad US large-cap equity market | US growth, inflation, Federal Reserve policy, and broad corporate earnings |
| US100 | Nasdaq-100 | Large non-financial Nasdaq companies, with strong growth-sector concentration | Interest rates, technology earnings, semiconductor demand, and growth expectations |
| US30 | Dow Jones Industrial Average | Thirty established US blue-chip companies | Moves in individual high-priced constituents and large traditional sectors |
Opening long positions in all three symbols can create overlapping exposure rather than diversification. A trader should review constituent concentration and correlation before treating the positions as separate ideas.
Nasdaq-100 Is Not the Nasdaq Composite
| Term | Meaning |
|---|---|
| Nasdaq Stock Market | The exchange on which many companies are listed |
| Nasdaq Composite | A broad index covering a large number of Nasdaq-listed securities |
| Nasdaq-100 | An index of 100 of the largest Nasdaq-listed non-financial companies |
| US100 | The JustMarkets CFD symbol linked to Nasdaq-100 movement |
A page discussing Nasdaq Composite should not automatically link it to a US100 trade without explaining the difference. The two indices have different constituent universes and methodologies.
What Is an Index CFD?
An index CFD is a contract between the trader and the provider. The result is based on the difference between the opening and closing prices of the CFD position, adjusted for the position size and applicable costs. The trader does not acquire the shares in the reference index, ETF units, voting rights, or ownership rights in the index provider.
- A long position gains when the CFD price rises and loses when it falls.
- A short position gains when the CFD price falls and loses when it rises.
- Margin allows exposure larger than the cash deposited for that position.
- Spread, swap, slippage, and currency conversion can reduce the net result.
- The broker’s symbol, contract size, trading session, and margin rules determine the mechanics.
Reference Index Names and JustMarkets Symbols
| Reference market | JustMarkets symbol | Important note |
|---|---|---|
| S&P 500 | US500 | CFD exposure; not ownership of an S&P 500 ETF or constituent shares |
| Nasdaq-100 | US100 | Not the same as Nasdaq Composite |
| Dow Jones Industrial Average | US30 | References a 30-company price-weighted index |
| Nikkei 225 | JP225 | Contract size differs materially from US index CFDs |
| DAX 40 | DE40 | European trading drivers and holidays apply |
| FTSE 100 | UK100 | Sensitive to UK and global-company factors |
| Hang Seng Index | HK50 | Sensitive to Hong Kong and China-related developments |
Lot, Contract Size, Point Value, and Notional Exposure
The word “lot” does not describe the same economic exposure for every index. Contract size determines how much one index point is worth for one lot. The minimum lot only shows the smallest order volume; it does not show risk by itself.
Core formulas
Notional exposure = index price × contract size × lots. Gross P/L = price movement × contract size × lots. If the profit currency differs from the account currency, the result is converted under the account rules.
| Symbol | Contract size | Minimum volume | Margin shown at review date | Why the comparison matters |
|---|---|---|---|---|
| US500 | 1 | 0.01 lot | 0.2% | At 0.01 lot, a one-point move has a much smaller value than at one full lot |
| US100 | 1 | 0.01 lot | 0.2% | Same contract-size structure as US500, but a different index level and volatility |
| US30 | 1 | 0.01 lot | 0.2% | Point value follows volume, but the reference index behaves differently |
| JP225 | 100 | 0.01 lot | 0.5% | The larger contract size means 0.01 lot does not match 0.01 lot of US500 |
| UK100 | 1 | 0.01 lot | 0.5% | Different margin and market drivers from US indices |
These figures are dated examples from the current instrument pages and may change. Always check the live symbol specification in the trading platform before calculating a position.
Worked Example: US500 Index CFD
Assume US500 is quoted at 7,500, the contract size is 1, and the trader opens 0.10 lot. The example is simplified and excludes taxes and provider-specific rounding.
| Step | Calculation | Result |
|---|---|---|
| Notional exposure | 7,500 × 1 × 0.10 | $750 of index-linked exposure |
| Illustrative margin at 0.2% | $750 × 0.2% | $1.50 required margin |
| Price movement | US500 rises from 7,500 to 7,530 | 30 index points |
| Gross P/L | 30 × 1 × 0.10 | $3.00 gross profit |
| Estimated trading costs | Spread, swap, slippage, and conversion | Deducted from gross P/L |
| Net result | $3.00 − all applicable costs | Depends on actual execution and holding period |
The small margin requirement does not mean the market risk is only $1.50. A 30-point move in the opposite direction would produce a $3 gross loss in this simplified position, and a larger or faster move can reduce equity further. Effective leverage is determined by the notional exposure relative to the account equity, not only by the advertised maximum leverage.
Three Different Clocks Affect Index Trading
Index CFD hours are often misunderstood because three related markets can operate on different schedules.
| Clock | What it represents | Why it matters |
|---|---|---|
| Underlying cash exchange | The main stock-exchange session for the constituent shares | Usually provides the strongest cash-market liquidity and corporate price discovery |
| Reference futures market | An exchange-traded derivative session used by many market participants | Can trade for longer hours and influence indicative pricing before or after cash hours |
| Broker CFD session | The hours during which the provider accepts orders in its CFD symbol | Includes the provider’s daily break, server time, holidays, and maintenance rules |
Index Trading Hours in WIB
At the review date, most JustMarkets index CFDs displayed a Monday-to-Friday server session around 01:02-23:58, with server time stated as GMT+3. This corresponds approximately to 05:02 until 03:58 WIB on the following calendar day. The schedule is a broker CFD session, not the cash-session hours of every underlying exchange.
Liquidity and spreads can vary during that long window. US index CFDs may become more active around the US cash open, while JP225 or HK50 can respond more strongly during Asian sessions. Market holidays and maintenance can shorten the available session.
Daylight Saving Time
The US cash-market open shifts by one hour in WIB when the United States enters or leaves daylight saving time. Do not publish one permanent WIB cash-open time for the entire year; verify the current calendar and the broker’s server time.
What Moves an Index?
| Index | Important drivers |
|---|---|
| IHSG | Bank Indonesia policy, rupiah movements, commodity prices, domestic growth, foreign flows, and earnings of large IDX companies |
| US500 | Federal Reserve policy, inflation, employment, GDP, broad earnings, and global risk appetite |
| US100 | Interest-rate expectations, technology and semiconductor earnings, AI and growth-sector investment cycles |
| US30 | Moves in its individual high-priced blue-chip constituents and developments in large traditional sectors |
| DE40 | German industry, European growth, ECB policy, exports, and energy conditions |
| JP225 | Yen movements, Bank of Japan policy, exporters, and Asian-market sentiment |
| UK100 | Sterling, multinational earnings, commodities, and Bank of England policy |
| HK50 | China and Hong Kong policy, property-sector developments, mainland growth, and regional capital flows |
An index is diversified compared with one company, but it is not immune to concentration. A small number of very large constituents can dominate a market-cap-weighted index, and a price-weighted index can be influenced disproportionately by high-priced shares.
Costs of Trading Index CFDs
| Cost | How it affects the position |
|---|---|
| Spread | The position begins with the difference between bid and ask prices; spreads may widen when liquidity falls |
| Commission | Some accounts charge a separate amount per lot or per side |
| Swap or financing | A position held through the provider’s rollover may receive or pay an overnight adjustment |
| Slippage | The execution price can differ from the requested price during gaps or rapid movement |
| Currency conversion | Profit and loss may need conversion into the account currency |
| Market gap | A Stop-Loss may be filled beyond the requested level when no price is available in between |
A “swap-free” label should be checked against the exact account status, instrument, holding period, and current terms. Current JustMarkets index pages display swap values, so the article should not promise unconditional zero overnight cost.
Leverage, Margin Call, and Stop-Out
Index CFDs can create substantial exposure from a small margin deposit. The provider may advertise fixed maximum leverage for selected symbols, but the trader controls actual risk through position size and account equity.
| Term | Meaning | Risk-control question |
|---|---|---|
| Margin | Funds allocated to support the open position | How much notional exposure is created by this margin? |
| Free margin | Equity not currently used as margin | How much adverse movement can the account absorb? |
| Margin level | A ratio based on equity and used margin | At which levels do warnings or automatic actions occur? |
| Margin call | A threshold indicating insufficient account resources | Is it only an informational level or also a notification? |
| Stop-out | Automatic closure of positions when the margin level reaches the stated threshold | Which positions close first and how can slippage affect the result? |
Index CFD vs ETF vs Futures vs Individual Shares
| Criterion | Index CFD | Index ETF | Index futures | Individual shares |
|---|---|---|---|---|
| Ownership | No | Ownership of fund units | No ownership of the constituent basket | Ownership of the selected company shares |
| Leverage | May be available through margin | Depends on the brokerage account | Built into the standardised contract | Depends on the brokerage account |
| Long and short | Usually both directions | Shorting depends on account and market rules | Both directions | Shorting depends on infrastructure |
| Expiry | Usually rolling, subject to provider terms | No contract expiry | Specified expiry and roll | No expiry |
| Typical costs | Spread, possible commission, swap, slippage | Spread, brokerage, fund expense | Commission, spread, margin, roll/basis | Spread, brokerage, custody or taxes where applicable |
| Counterparty structure | CFD provider | Fund, custodian, exchange, and broker | Exchange and clearing framework | Broker and custody chain |
Real-Market Indices vs Synthetic Indices
| Feature | Real-market stock index | Synthetic index |
|---|---|---|
| Reference | A defined group of real listed securities | An algorithm or provider-created process |
| Methodology | Published constituent and weighting rules | Defined by the synthetic-index provider |
| Main drivers | Earnings, interest rates, currencies, policy, and market flows | The provider’s algorithm and stated volatility model |
| Trading schedule | Related to real-market and provider sessions | May operate continuously depending on the product |
| Examples | IHSG, S&P 500, Nasdaq-100 | Provider-specific synthetic volatility indices |
synthetic index should not be presented as another stock index. It does not represent the listed companies in IHSG, S&P 500, or Nasdaq-100, even when its chart resembles a market price series.
Regulatory Context for Indonesian Users
Indonesia’s regulatory framework depends on the product and the legal structure. OJK Regulation No. 1 of 2025 addresses financial derivatives with securities as underlying assets and includes a framework relevant to foreign single stocks and foreign stock indices. This does not mean every offshore CFD offered through an international entity becomes a locally OJK-regulated account.
- Identify whether the product is an ETF, futures contract, option, or OTC CFD.
- Read the exact legal-entity name in the Client Agreement.
- Verify the regulator and licence applicable to that entity.
- Check the product disclosure, margin rules, counterparty model, and complaint process.
- Do not infer local regulation solely from an Indonesian-language website or a locally available payment method.
How to Choose an Index to Study
1. Understand the index methodology and its largest constituents before looking at a chart.
2. Identify the macroeconomic releases, central bank, currencies, sectors, and earnings that commonly move it.
3. Check the broker symbol, contract size, minimum volume, profit currency, and margin requirement.
4. Compare the cash-exchange session, reference-futures session, and broker CFD session.
5. Observe the typical spread during the hours when the strategy will actually trade.
6. Use a position-size calculation based on a planned maximum loss rather than the maximum leverage offered.
7. Avoid treating highly correlated index positions as independent diversification.
8. Start on a demo account and then use a small live position only after the specifications are understood.
Common Index-Trading Mistakes
| Mistake | Better approach |
|---|---|
| Assuming US100 is Nasdaq Composite | Confirm the reference benchmark and methodology |
| Thinking US500 gives ownership of 500 shares | Recognise that a CFD is a price-exposure contract |
| Using the same lot size on every index | Calculate contract size and point value for each symbol |
| Ignoring profit currency | Include conversion into the account currency |
| Opening US500, US100, and US30 as three independent ideas | Review overlap and correlation |
| Trading only because margin is small | Base risk on notional exposure and stop distance |
| Using cash-exchange hours as the broker schedule | Check all three trading clocks |
| Assuming Stop-Loss guarantees the requested price | Allow for gaps and slippage |
| Calling synthetic indices stock indices | Separate real-market benchmarks from algorithmic products |
Trading Global Index CFDs with JustMarkets
JustMarkets currently lists global index CFDs including US500, US100, US30, JP225, DE40, UK100, HK50, AU200, CHA50, EU50, FR40, SG20, and ES35. Availability can depend on the account, entity, platform, and current product list. IHSG, LQ45, and IDX30 are not shown among the current index CFD symbols.
Before opening a position, use the live instrument specification to check the contract size, minimum lot, average spread, current margin, swap values, profit currency, and trading session. Platform values and current legal terms take priority over an educational article.
Risk reminder
Index CFDs are leveraged instruments. A broad index may reduce company-specific concentration, but leverage, gaps, correlated positions, and overnight costs can still create rapid losses. This content is educational and is not investment advice.
Frequently Asked Questions
1
What is a stock index?
A stock index is a calculated benchmark that tracks a selected group of securities under a defined methodology. It is not a company or a security that can be owned directly.
2
What does indices trading mean?
It means taking exposure to an index through a tradable product such as an ETF, futures contract, option, or CFD.
3
What is the difference between IHSG, LQ45, and IDX30?
IHSG is a broad Indonesian market benchmark. LQ45 contains 45 liquid large-cap shares, while IDX30 is a more concentrated group of 30 selected liquid large-cap shares.
4
Can I buy an index directly?
No. Investors and traders use products designed to track or reference the index, including index funds, ETFs, futures, options, and CFDs.
5
What is an index CFD?
It is a contract with a provider whose result follows the movement of a reference index. It does not provide ownership of the constituent shares.
6
Is US500 the same as the S&P 500?
US500 is the broker’s CFD symbol linked to S&P 500 movement. The S&P 500 itself is the benchmark; the CFD is a separate product.
7
Is US100 the Nasdaq Composite?
No. US100 references the Nasdaq-100, which includes 100 large non-financial Nasdaq-listed companies. Nasdaq Composite is a much broader index.
8
How do US500, US100, and US30 differ?
They use different constituent sets and weighting methods. US500 is broad, US100 is growth- and technology-heavy, and US30 is a 30-company price-weighted benchmark.
9
What is contract size in index trading?
Contract size determines the monetary value of one index point for one lot. It must be combined with lot volume to calculate exposure and P/L.
10
Why does 0.01 lot not mean the same risk on every index?
Different symbols can have different contract sizes, prices, volatility, margin, and profit currencies.
11
How is index CFD profit calculated?
Gross P/L is generally the price movement multiplied by contract size and lot volume, followed by any required currency conversion and deduction of costs.
12
When can index CFDs be traded?
During the broker’s stated CFD session. The underlying exchange and reference futures market may have different schedules.
13
Why do US market hours change in WIB?
The United States observes daylight saving time, so the corresponding Indonesian time shifts by one hour during part of the year.
14
What is the difference between an index CFD and an ETF?
A CFD provides contractual price exposure without fund ownership. An ETF is a tradable fund security that can be owned and has its own expense and custody structure.
15
What is the difference between a stock index and a synthetic index?
A stock index represents real listed securities under a methodology. A synthetic index is generated under a provider-defined algorithm and does not represent those companies.
16
Does JustMarkets offer IHSG?
IHSG is not shown among the current JustMarkets index CFD symbols. Users should check the latest instrument list before making any assumption about availability.
17
Are index CFDs suitable for beginners?
They can be used for learning on a demo account, but leverage, contract specifications, gaps, and margin rules must be understood before live trading.