3 ways the ASX200 can benefit CFD traders in 2025

After hitting an all-time high in June 2025, the ASX200 is on the radar of many CFD traders looking to engage with market momentum.
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With an all-time high in June 2025 and a gain of more than 10% during FY 24/251, the ASX200 has been a strong performer.
So it's no surprise that investor interest is on the rise.
For CFD traders with an existing stake in stocks or those looking to explore more options as part of their investment strategy, the rallying of the ASX200 can present a range of opportunities.
1. Access to a broad range of companies and commodities
Exposure to the ASX200 allows you access to a wide range of different types of companies.
The ASX200 includes companies like:
- Commonwealth Bank of Australia - Finance
- BHP Group Ltd - Resources
- Wesfarmers - FMCG and Consumer Goods
- Xero Ltd - Tech
You can learn more about the ASX200 with Pepperstone, and get a breakdown of its implications for the Australian economy.
Now, experienced investors will realise that this access to diverse companies and industries applies whether you're opting for CFDs or purchasing stocks directly.
So why CFDs in particular?
Being able to use leverage when investing in CFDs means a lower initial financial outlay. We'll talk more about this below.
Portfolio diversification is another powerful motivator for investors. Not simply for the range of industries, but also for the potential to use CFDs as a hedge for a balanced portfolio.
Growth in the ASX200 doesn't happen in isolation either. Pepperstone's Head of Research, Chris Weston, noted a number of similar rises around the globe since April 2025.
- ASX200 +20.7%
- HK50 +27%
- Taiwan index +29.2%
- JPN225 +26.3%
- Kospi +26.7%
- GER40 +27%
- FTSE100 +17.6%
- NAS100 +34.4%
- US2000 +27.2%
- US500 +25.5%
Weston attributes this growth to a more compelling macro environment around the globe, in part due to pauses on US tariffs, which have previously contributed to market uncertainty.
So keeping an eye on the ASX200 can also yield insights into which other markets are showing growth or may prove useful for investment.
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2. Ability to make rapid movements
CFDs are generally considered highly liquid assets. Hold times tend to be fairly short and execution times for new contracts are extremely quick.
So, in conjunction with being able to use leverage (more on that in a moment), it can provide you with the ability to take advantage of price movements if there are sudden rises or falls in hot stocks.
As you're speculating on future pricing – which can go up or down – there are trading opportunities irrespective of the wider market conditions.
This isn't to say there's no risk involved. Keeping a close eye on market analysis can help provide insights and make more informed decisions.
However, for experienced and highly active investors, the speed at which CFDs are traded can help open up a range of trading opportunities.
3. Leveraged trading
One feature that CFDs offer – both for the ASX200 and other types of investment – is the ability to trade using leverage.
As you're not purchasing the underlying asset, you don't need to invest the full amount.
This separates CFDs from most other types of investments.
When you're trading with Pepperstone as a retail client in Australia, you're able to trade the ASX200 with up to 20:1 leverage.
Professional clients can trade with up to 400:1 leverage.
Being able to use leverage for investing means that you can potentially earn more in profits, with reduced costs.
With this said, CFDs are considered a high-risk investment product. Using leverage can also magnify your losses, too.
Pepperstone has a negative balance protection for retail clients in place; however, you should never invest more than you can afford to lose.
There are also steps you can take to mitigate risk.
Pepperstone offers a demo account to members. The demo account lets you simulate real-world market conditions and test a variety of trading strategies.
Using tools like this – and continuing your education as an investor more broadly – can help you consider your investing choices carefully before placing your funds at risk.