Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

How to trade or invest in the Taiwan Index

The Taiwan Capitalization Weighted Stock Index represents all common stocks listed on the Taiwan Stock Exchange. Find out how to trade and invest in TAIEX with our Taiwan Index.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account.

Contact us 0800 195 3100

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.

Contact us 0800 409 6789

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account.

Contact us 0800 195 3100

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Get info fast via our instant help and support portal. Available for account queries, ProRealTime, product info and more.

Visit help and support for more information.

Call 0800 409 6789 or email helpdesk.uk@ig.com if you have any questions about trading or investing. We're available 24/7 between 8am Saturday and 10pm Friday.

Contact us 0800 409 6789

You can get exposure to the TAIEX via our Taiwan Index. To open a position, follow these three steps:

1. Decide whether you want to trade or invest

You can get exposure to the TAIEX by trading or investing in Taiwan Index ETFs and individual shares,* or trading on the index’s value.

2. Create a trading plan

Before taking a position on the Taiwan Index, decide whether you're a short- or long-term trader – and learn how to manage your risk.

3. Open a live account

To open any or all of the following accounts – spread betting, CFD trading and share dealing – start by filling in our application form.

To help you decide whether you want to trade or invest in the Taiwan Capitalization Weighted Stock Index (TAIEX) via our Taiwan Index, we explain each method in detail below.

How can you trade or invest in the TAIEX?

You can trade or invest in the Taiwan Capitalization Weighted Stock Index (TAIEX) via our Taiwan Index, which tracks the price of the underlying.

You can:

  1. Trade the Taiwan Index price directly
  2. Trade or invest in TAIEX-related ETFs
  3. Trade or invest in TAIEX-listed shares*

Trade the Taiwan Index price directly

  • Get exposure to the performance of Taiwan’s most popular listed companies from a single position
  • Speculate on the Taiwan Index, which tracks the TAIEX, using spread bets or CFDs. While these are derivatives, this is the most direct way to trade on the price of the underlying – the Taiwan Capitalization Weighted Stock Index
  • Access the TAIEX in a market with high liquidity
  • Go ‘long’ if you think the price will rise or ‘short’ if you think the price will fall
  • Trade commission-free with spread bets or CFDs (excluding share CFDs) as charges are included in the spread
  • Choose our Taiwan Index ‘cash’ (spot) market to take a short-term position
  • Trade our Taiwan Index via futures or options for positions over the long term
  • Place your deals almost 24/7 (excludes 10pm Friday to 8am on Saturday and 10.40pm to 11pm on Sunday)

Trade or invest in TAIEX-related ETFs

  • Get broad exposure to the TAIEX with our linked ETFs
  • Buy and own actual shares in a TAIEX-related ETF on our share dealing platform
  • Invest in these ETFs from just £3 commission when you have a share dealing account1
  • Take a position on the price movements of TAIEX-linked ETFs without owning them, using spread bets and CFDs
  • Go long or short on ETF prices, but remember that this offers lower liquidity and higher spreads than trading the Taiwan Index itself via spread bets or CFDs
  • Trade on the price of the TAIEX-related ETF, calculated using the fund’s net asset value (NAV)

Trade or invest in TAIEX-listed shares*

  • Buy and own physical shares in a TAIEX-listed company* using our share dealing account
  • Invest in TAIEX-listed stocks* from £0 commission on our share dealing platform1
  • Get exposure to specific stocks on the Taiwan Capitalization Weighted Stock Index without trading the entire index
  • Speculate on TAIEX-listed stock* price movements without owning the shares, using spread bets and CFDs
  • Go long if you think share prices will rise, or short if you think they’ll fall
  • Trade shares commission-free with spread bets. CFD share trades incur a minimum commission charge of $15

Trading the Taiwan Index price directly

Trading or investing in a Taiwan Index ETF

Trading or investing in TAIEX-listed shares

Account types

Spread betting or CFD trading account Spread betting or CFD trading account to trade, or a share dealing account to invest Spread betting or CFD trading account to trade or a share dealing account to invest

Market hours

24/7 (except 10pm Friday to 8am Saturday and 10.40pm to 11pm Sunday) UK-listed TAIEX ETFs can be traded when the LSE is open – 8am to 4.30pm, Monday to Friday (UK time) When the TAIEX is open – 2am to 6.15am, Monday to Friday (UK time)

Timeframe

Short to medium term Short to medium term for trading and long term for investing Short to medium term for trading and long term for investing

Liquidity and execution

0.014 second execution speed and unique deep liquidity Higher liquidity offered by trading the Taiwan Index price directly Higher liquidity offered by trading the Taiwan Index price directly

Costs

Commission-free, with spreads from 7 points.

Trading the Taiwan Index on the spot (cash) incurs overnight fees, but index futures don’t incur these fees
Invest in UK-listed TAIEX ETFs from £3 commission per trade.1
Commission-free for spread betting, with spreads between 0.1% and 0.6%.

Min commission £10 for CFD ETFs listed in the UK
Trade or invest in TAIEX shares that are dual listed in the US.

Trade via CFDs: commission is 2 cents per share, min $15 commission

Trade via spread bets: 0.1% commission

Invest via share dealing: from zero commission1

Overnight funding fees are charged on cash index, share and ETF positions held open after 10pm (UK time). These fees are not charged on futures and options.2

Open a trading or investing account

There are different account types you can open to take a position on the Taiwan Index with us: spread betting and CFD trading accounts, and a share dealing account.

Spread betting and CFD trading

Share dealing

Speculate on the price of stocks, ETFs and index prices rising or falling Buy and sell underlying stocks* and ETFs
Leverage your exposure – you’ll only pay a deposit3 to get exposure to the full position size Pay the full value of the shares or ETFs you buy upfront
Leverage means both profit and loss will still be magnified to value of the full trade – so you could gain or lose money faster than you’d expect You may get back less than you put in because the value of shares and ETF can fall as well as rise
Trade tax-free with spread bets and offset losses with CFDs3 Invest tax-free with a stocks and shares ISA3
Take shorter-term positions Focus on longer-term growth
You can look to hedge your portfolio when trading Build a diversified portfolio
Trade without owning the underlying asset Take ownership of the underlying asset
No shareholder privileges Gain voting rights and dividends (if paid)
Trade in both our spread betting account and CFD account Invest in our share dealing account or with a ready-made Smart Portfolio

Learn what moves the Taiwan Index’s price

  • Economic events – China’s political and economic climate plays a big role in influencing the Taiwan Index’s price movements, as key stocks can be impacted by moderate to significant changes
  • News – any global events generally have an impact on the price of an index, for example the 2019 pandemic
  • Earnings reports – when constituents of the TAIEX release their earnings reports, it’s important to keep an eye on big changes to each company’s market cap. If a company has significant weight in the Taiwan Index, it can sway the index’s price
  • Interest rate decisions – short-term volatility caused by interest rate decisions by major central banks can affect the Taiwan Index’s price
  • Currency rates and fluctuations – the strength of currencies like TWD and RMB often have a direct impact on the performance of the companies within the Taiwan Index, as its constituents do business with countries around the world

Hone your Taiwan Index trading strategy

Follow these tips when creating your Taiwan Index trading strategy:

  • Pick a trading style: decide how you want to trade the index based on your risk appetite and how much time you have. Read about the four trading styles suited to different types of traders
  • Look at charts and price action: use HS50 price charts to help you determine market sentiment. It’s important to know how to use charts when trading
  • Make use of technical analysis and indicators: see how technical analysis and trading indicators can help you to identify chart patterns, trading signals and trends in the markets
  • Set trading alerts: set criteria for your trades and get notified when they’re met. This gives you an opportunity to act faster when you think the market price may move in a certain direction

Take your first Taiwan Index trading or investing position

Discover the various ways you can open a position via spread betting, CFD trading or share dealing below.

Spread betting on the Taiwan

When you spread bet, you put up a certain amount of capital per point of movement in the underlying market – in this case, the Taiwan Index. Your profit or loss is calculated by multiplying your bet size by the number of points of movement.

There are various ways to spread bet on the Taiwan Index.

  • Cash indices: deal at the current price of the underlying market with tighter spreads. Short-term traders prefer cash (or spot) trading
  • Index futures: agree to trade the index at a specific price on a specific date. Longer-term traders sometimes prefer futures trading
  • Options: buy the right, but not the obligation, to trade the index at a specified price in future. More experienced, long-term traders often trade on options
  • ETFs: speculate on all TAIEX-related stocks in a single position. Trade on the spot or using forwards (the name for futures when trading ETFs)
  • Shares: trade on rising or falling prices of TAIEX-listed shares without owning them

For example, you want to trade the cash index because you think the price of the Taiwan Index is going to rise from its current level of 14,500. So, you go long at £10 per point and open your position by clicking ‘buy’ on our platform.

If the index’s price increased to 14,600, you’d make a profit of £1000 (100 points x £10 per point) excluding any other costs you might incur, such as overnight funding.

If the index price dropped to 14,400 instead, moving 100 points against your prediction, you’d make a loss of £1000.

Trading CFDs on the Taiwan Index

A contract for difference (CFD) is an agreement to exchange the difference in price of an underlying asset from the time it’s opened to when it’s closed.

So, however much the price of that asset has risen or dropped since you opened your position is what you stand to make as a profit or a loss.

You can trade Taiwan Index CFDs in a variety of ways.

  • Cash indices: trade on the current price of the underlying market (the index) and get tighter spreads. This is popular among those with a short-term view
  • Index futures: agree to trade the index at a predetermined price on a date in future. This is often preferred by those with a longer-term view
  • Options: buy the right (but not the obligation) to trade the underlying at a predetermined price in future. Options are generally suited to more experienced traders with a long-term view
  • ETFs: get exposure to a basket of TAIEX stocks, on the spot or using forwards, in a single position
  • Shares: speculate on TAIEX-listed shares’ prices rising or falling without owning them

Here’s an example of how CFD trading works. Let’s say you think that the Taiwan Index price is going to rise from its current price of 14,500. You buy 10 CFD contracts on our index worth £5 per contract. If your prediction is correct, and you close your position when the sell price is 14,590. The difference is 90 points, multiplied by the £5 per contract multiplied by 10 contracts, so your profit is £4500 – excluding other costs.

If your prediction is incorrect and the market drops, and you closed your trade at a level of 14,450, your loss would be £2500 – excluding other costs.

Investing in the Taiwan Index with share dealing

You can invest in TAIEX-related ETFs and stocks listed on the index* via our share dealing account. Investing in shares means you own them, so you can only ‘go long’. It’s more suited to those who take a longer-term view of the market.

Share dealing is non-leveraged, which means you’ll commit the full value of the investment upfront – not just a deposit.

You can invest in Taiwan Index:

  • ETFs: buying TAIEX-tracking ETFs is a common way to get exposure to the entire index from a single position
  • Shares: purchasing some of the top TAIEX stocks* outright is also popular, as it’s a way to own a piece of a company you value, while earning possible dividends and voting rights
  • Ready-made portfolios: get access to the Taiwan Index and its stocks through an investment portfolio that’s managed by experts

FAQs

What are the ways you can trade or invest in the Taiwan Capitalization Weighted Stock Index (TAIEX)?

You can trade or invest in TAIEX-listed stocks* or related ETFs on our share dealing platform. You can also get exposure to our Taiwan Index, which tracks the movements of the TAIEX.

You can trade using spread bets or CFDs to speculate on the cash index, forwards, options, ETFs and shares. Alternatively, you can invest in TAIEX-listed stocks and related ETFs via share dealing.

What should you know before trading the Taiwan Index?

Before trading on the Taiwan Index, it’s important to do your research and understand how the index works – including how it’s calculated and what affects its price. Then, decide whether you want to trade or invest in it.

Try out our demo platform, or open a trading account if you’re ready to take on the live markets.

How is the price of the Taiwan Index calculated?

The price of the Taiwan Index is calculated by measuring the market capitalisation of all the companies listed on the Taiwan Capitalization Weighted Stock Index (TAIEX).

How do companies get onto the Taiwan Capitalization Weighted Stock Index?

The constituents of the Taiwan Capitalization Weighted Stock Index (TAIEX) are all common stocks listed on the Taiwan Stock Exchange (TWSE) - excluding Taiwan Innovation Board-listed shares. The TAIEX measures the performance of these stocks, which you can trade on via the Taiwan Index on our platform.

What are the Taiwan Index trading hours?

The Taiwan Capitalization Weighted Stock Index trades between 2am and 6.15am UK time (9am and 1.25pm Taiwan time), Monday to Friday. Our indices, including the Taiwan Index, are normally available for dealing 24 hours a day between 23.02 Sunday and 22.15 Friday (London time) each week. Note that daylight savings time might affect these hours.

1 Trade in your share dealing account three or more times in the previous month to qualify for our best commission rates. See our full list of share dealing charges and fees.
2 Overnight funding is the charge you pay for keeping daily funded bets or cash CFD trades open past 10pm UK time; we’ll make an interest adjustment to your account to reflect the cost of funding your position. Learn more about how overnight funding is calculated.
3 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
* You can only invest in TAIEX-listed stocks with us if they’re dual listed on a US exchange.