What is indices trading?

Indices offer a way to gain exposure to the financial markets. Understand what indices trading is and learn about investing in key indices such as the S&P 500, FTSE 100 and the DAX 40. Discover what can impact the price of an index and some of the risks attached to trading them.

How do indices work?

Indices measure the performance of a group of stocks. Discover everything you need to know about stock indices, including how to trade them and which markets are available to you. Start trading today. Call +44 (20) 7633 5430, or email [email protected] to talk about opening a trading account. We’re here 24/5. What are indices?

Why is indices trading a good option for speculators?

They allow investors to get market exposure to the entire industry or even economy, without having to trade company stock directly. Moreover, indices trading provides speculators with a potential opportunity on both rising and falling markets since they can open either long or short positions.

What are the advantages of trading indices using derivatives like CFDs?

A primary advantage of trading indices using derivatives like CFDs is the sheer breadth of market exposure accessed in a single position. Indices, as a representation of an entire market or industry, measure the overall performance of all stocks included within the index.