How to trade the AI Index

Trade the AI Index directly

• Get diverse exposure to the performance of the US AI companies included in the index using a single position
• Take a position on an asset with high liquidity
• Trade commission free with CFDs as charges are included in the spread

Trade ETFs that track the AI Index or some of its holdings

• Take a position on the price of an ETF – calculated using the fund’s net asset value (NAV) – rather than the current price of the index
• Get broad exposure in a single trade
• Choose your preferred AI ETF based on the assets it tracks

Trade AI stocks that are constituents of the AI Index

• Target specific stocks that are constituents of the AI Index based on possible unique opportunities
• Pay only a small commission to open and close your position
• Get direct market access (DMA) – trade directly into the order books of major equity exchanges

The composition of the AI Index is subject to change to reflect relevant developments. While it’s likely that industry giants will maintain their place within the AI index, it’s a highly competitive market.

Open your CFD trading account

Before you create a live CFD trading account with us, it’s important to read documents like our Risk Disclosure Notice and Margin Trading Customer Agreement to get an understanding of the relevant details. You can apply for an account by filling in a form (if you believe that CFD trading is suitable for you). We’ll then verify your identity. When you’re ready, you’ll be able to fund your account.

Remember, CFDs are leveraged. So, you’ll open a trade by depositing only a fraction of the total value of your position. But, because your total exposure is greater than the deposit, your losses could exceed the initial amount you paid to open the position. When trading with leverage, it’s vital to take necessary steps to manage your risk.

Learn about what moves the price of the AI Index

Understanding what influences the AI Index’s price can be useful in helping you form decisions about when to open and close positions. Some of the factors that can move the price of the AI index are:

• Developments in the AI market
• Economic events
• Exchange rates
• News releases
• Constituent companies’ earnings reports

Employing fundamental analysis and technical analysis can also help you make informed trading decisions. It’s also important to follow your trading plan, while making any necessary adjustments when needed. Since you could profit or incur a loss, it’s vital that you stick to your risk management strategy so that you don’t lose more than you’re comfortable with.

Create a trading plan and refine it

A trading plan can help you navigate the journey towards reaching your trading goals. Refining it is an ongoing project, as adjustments may be needed based on what will work best for you.

Some of the key aspects to consider when creating your trading plan are:

• Trading style
• Trading strategies
• Charts and price action
• Technical analysis indicators
• Risk management tools
• Trading alerts
• Trading times
• News

Take your first AI Index position

When you’re ready, you can start trading the AI Index. You must specify your directional assumption (long or short) and the position size to place your trade. You can put risk management measures in place, like a stop-loss or a guaranteed stop (to protect against slippage), before or after you open a position. To avoid rapid price movements – ie during times of volatility – affecting your exit point negatively, it may be more suitable to set the extent of loss you’d be willing to accept before entering a trade.