Overview

Trading indices is like trading the stock market. You need the right services and products to back you up, or it would mean losses. But that's why we are here.

What Are Indices?

Indices are sometimes called equity indices. They are stock indices or what you may know as stock market indexes. Indices measure the values placed on a specific market section and are considered more of a group of shares and their values. In a simple definition, indices are just a group of shares that come from an exchange.

They are represented by a group of companies being placed together as per the market they are in and their value. A good example of indices is the US Tech 100. The US Tech 100 are the largest companies on the NASDAQ Stock Exchange in New York, comprising the top 100 companies. While the indices can represent the stock market, they can also represent the top companies in different countries and not only those listed on NASDAQ.

Indices are important since they show the direction of a specific market and sometimes represent an entire nation's economy. Given that it is a collection of companies, any movement of a single company listed in one of the indices would mean a change to the overall market.

Examples of Indices People Trade with

To get a better idea of indices, it should serve you well to be introduced to some of the major indices people trade with globally. They include:

  1. NASDAQ
  2. Dow Jones
  3. S&P 500
  4. Euro Stoxx 50
  5. FTSE 100
  6. CAC 40
  7. DAX
  8. Nikkei 225
  9. ASX 200

Thus, these are a total of different companies in one market. They are composed of the biggest companies that can be found in the market.

How Trading with Indices Works

The basic idea of trading is rooted in the selling and buying of instruments since the price of the instruments doesn't remain the same. This is no different for indices. Indices are calculated through the use of different formulas to determine the actual price or value of it. Therefore, simple changes in companies' share prices within the indices would mean that their calculation is done again, and a new value is created. Depending on the market conditions, the indices' movement and change in value are where you get to understand whether you buy or sell and make money from it.

Diversify Your Portfolio

You can diversify your indices portfolio by trading with us. We offer you all the major indices that you can trade with. We have offered a diverse portfolio of indices that you can use to diversify yours and get the opportunity to earn big. We understand the importance of indices to every trader and the flexibility it brings to their portfolio. Just as we have made trading other instruments easy for you, we have not left out the indices. Trade indices with us as your broker and be part of a new experience.