Indices serve as a benchmark to measure the performance of a specific group of assets—typically stocks.
A good example is the S&P 500, which represents 500 of the largest publicly traded companies in the U.S. When the value of these individual stocks rises, the S&P 500 increases as well. Likewise, if those stocks drop in value, the index declines. Global markets have many indices—like the UK’s FTSE 100 and Germany’s DAX 30—each tracking a specific group of top companies in their regions.
When you trade indices, you’re not buying the actual stocks—instead, you’re speculating on their price movements through a CFD (Contract for Difference).
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Why trade Indices?
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Tips trading Indices
Indices Trading Examples
#1 S&P500 sell
Selling the S&P 500 indicates an expectation that the overall U.S. stock market will decline in value.
#1 S&P500 buy
Buying the S&P 500 reflects a positive outlook on the performance of the top 500 publicly listed U.S. companies.
CFDs represent intricate financial instruments and carry a substantial risk of incurring rapid financial losses due to their inherent leverage. It is worth noting that an overwhelming majority, precisely 84.43%, of retail investor accounts experience monetary losses when engaging in CFD trading with this particular provider.