Netherlands 25
Index Trading

The Netherland 25 is a financial instrument that is based on the AEX 25 Future Index. At iFOREX, you can trade the Netherland 25 in any direction – up or down – using customized leverage of up to 200:1.

Background

People have been trading the AEX 25, as well as other market indices for many years. Now, iFOREX offers you the opportunity to trade the Netherland 25, which is based on the AEX 25 Future Index.

The AEX 25 is a stock market index composed of the 25 most actively traded securities on the Euronext Amsterdam Exchange. They include leading Dutch brands such as Royal Dutch Shell, Unilever, ING Group, Philips and Heineken, to mention a few.

The AEX 25 is a capitalization-weighted index and its composition is reviewed four times a year - a full "annual" review in March and interim "quarterly" reviews in June, September and December. Any changes made as a result of the reviews take effect on the third Friday of the month. At each main annual review, the index weightings of companies in the index are capped at 15%, but range freely with the share price subsequently.
 

Netherland 25 Trading Features

• Diversify your portfolio by trading a financial instrument that is based on a local index (where permitted by local regulations).
• Trade using customized leverage of up to 200:1 (where permitted by local regulations).
• Implement a variety of trading strategies including ‘short trading’ or ‘hedging’.
• Trade anytime, anywhere via advanced trading platforms.
   

Trade Example*

Although our CFDs follow the price of the underlying instrument, traders can maximize their trades by using customized leverage.

So for example if you were to invest only €200, your potential purchasing power may be up to 200 times i.e. €40,000 (where permitted by local regulations).

If the Netherlands 25 is trading at 420 points, then the price of one Netherlands 25 contract is €420 (In this example the spread is not included in the calculations). The use of leverage grants you the purchasing power to purchase the contract, or even 95 contracts, for the purpose of this example, whereas with your initial €200 investment you wouldn’t have been able to purchase even one contract in the underlying exchange. As such, if you believe that the Netherlands 25 is going to rise then it would only be logical to ”Buy” it or to go “Long”.
If the price then increases from 420 to 430 points (+2.38%) the profit on that trade would be calculated as follows:

* This is not based on live data and is a hypothetical example. Figures do not take into account the spread.

If the Netherlands 25’s price drops below your opening price, then your potential loss is limited to your initial €200 investment.

It is important to note that trading CFDs involves a certain level of risk, but due to our negative balance protection program you can never lose more than you have invested.