Cannabis Index

(CANNAB)

The cannabis market is becoming increasingly popular, and there are different ways that you can get exposure to it. One such a way is through IG’s Cannabis Index, which comprises of 20 constituent marijuana stocks. Learn more about the index and find out how to trade it.

Cannabis Index chart This market's chart. This is a visual representation of the price action in the market, over a certain period of time. You can use this to help gauge a market’s performance.

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What is the Cannabis Index?

The Cannabis Index is a stock index that captures the gross total return performance of the 20 largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry. The index is calculated and managed by BITA GmbH.

There is more than one way to get access to the cannabis market – learn about them here

What stocks are in the Cannabis Index?

Currency
Aleafia Health Inc CAD
Aphria Inc CAD
Aurora Cannabis Inc CAD
Auxly Cannabis Group Inc CAD
CannTrust Holdings Inc CAD
Canopy Growth Corporation CAD
Cronos Group Inc CAD
Emerald Health Therapeutics Inc CAD
The Green Organic Dutchman Holdings Limited CAD
HEXO Corporation CAD
Khiron Life Sciences Corporation CAD
MediPharm Labs Corporation CAD
OrganiGram Holdings Inc CAD
PharmaCielo Limited CAD
Zenabis Global Inc CAD
Corbus Pharmaceuticals PLC - ADR USD
GW Phramaceuticals PLC - ADR USD
Innovative Industrial Properties Inc USD
Tilray Inc USD
Zynerba Pharmaceuticals Inc USD

This list was last updated on 20 November 2019.

Everything you need to know about the best cannabis stocks in the world

How to trade the Cannabis Index

You can trade the Cannabis Index by taking a position on the performance of the index via derivatives such as CFDs or spread bets. If you trade derivatives, you won’t take ownership of any underlying assets, so you can speculate on price movements in either direction. In other words, you can ‘buy’ if you think the index price will go up, or ‘sell’ if you think it will go down.

Many people choose trading because you get more flexibility with leverage, which enables you to open a position with a small deposit called margin. You’ll still get exposure to the full value of the position, and your profit and loss will be based on the total position size. Further, there are various tax benefits and you can hedge your positions.1

To trade the Cannabis Index price, follow these steps:

  1. Create an IG trading account or log in to an existing account
  2. Open the platform and type ‘Cannabis Index’ in the search bar
  3. Choose your position size
  4. Select ‘buy’ or ‘sell’ in the deal ticket and confirm the trade

Ready to trade the Cannabis Index? Open a live trading account.

  • CFD
  • Spreadbetting

Details for Cannabis Index -

Dealing

Minimum size 0.50

Contract size USD 1

One Pip means 1 Index Point

Value of one Pip USD 1 (GBP 0.76)

Margin 10%

Minimum stop distance 8

Minimum guaranteed stop distance 5.0%

Margin

Your aggregate position in this market will be margined in the following tiers:

Tier Position size Margin
1 0 - 62 Contracts 10%
2 62 - 186 Contracts 25%
3 186 - 496 Contracts 50%
4 496 + Contracts 75%

If your aggregate position is larger than Tier 1, your margin requirement will not be reduced by non-guaranteed stops.

Please note: we have tried to ensure that the information here is as accurate as possible, but it is intended for guidance only and any errors will not be binding on us.

Special info

[Gross Total Return performance of the 20 largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry., The index is calculated and managed by BITA GmbH.]

Other positions taken by clients trading this market

Use this to see how IG client accounts with positions on this market are trading other markets. Data is calculated to the nearest 1%, and updated automatically every 15 minutes.

This is calculated to the nearest 1%.

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FAQs

Could I profit from trading cannabis markets?

The short answer is yes, you could, but there is also the potential for losses. There are two ways to trade the cannabis markets with IG and possibly profit, namely CFDs and spread bets. Both are derivative products, which enable you to speculate on price movements without taking ownership of any underlying assets. You can go long or short on the following cannabis markets with IG:

  • Cannabis shares: Enabling you to speculate on the movement of individual stocks across the marijuana industry
  • Cannabis Index: Giving you access to the IG cannabis stock index with 20 of the world’s best marijuana stocks as constituents
  • Cannabis ETFs: Providing access to a basket of marijuana stocks based on industry trends

In which countries is marijuana legal?

Marijuana is legal in several countries, depending on its use. Medical marijuana is legal in Argentina, Australia, Canada, Chile, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Finland, Germany, Greece, Israel, Italy, Jamaica, Luxembourg, Macedonia, Malta, Mexico, the Netherlands, Norway, Peru, Poland, Portugal, San Marino, South Africa, South Korea, Sri Lanka, Switzerland, the UK, Uruguay and Zimbabwe. A couple of states in the US also allow marijuana for medical purposes, but the country as a whole has not legalised it.

Some of the countries that allow marijuana for recreational purposes include Canada, Uruguay, Georgia and South Africa, while its use is also permitted in certain US states.

What should you bear in mind before trading cannabis?

Before trading cannabis, bear in mind the risks involved in trading. With cannabis, this includes regular legislation changes as well as the volatility of the stocks. Make sure you have the necessary risk management measures in place before opening your cannabis position.

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1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.