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Indices

Unlock opportunities in indices trading to speculate on market movements without buying individual stocks.

Indices

What are the Indices?

Indices trading means buying and selling  financial instruments based on the performance of an index. An index is a statistical measure of the changes in a portfolio of stocks that represent a particular market or sector of the financial markets. Indices are used to track and measure the performance of a group of assets, providing a snapshot of the overall market or a specific sector.

Traders and investors engage in indices trading to speculate on the direction of the market or a particular sector without having to buy individual stocks. Instead, they trade financial instruments such as index futures, options, or contracts for difference (CFDs) that derive their value from the underlying index.

Traders and investors engage in indices trading to speculate on the direction of the market or a particular sector without having to buy individual stocks. Instead, they trade financial instruments such as index futures, options, or contracts for difference (CFDs) that derive their value from the underlying index.

Commonly traded indices include the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, FTSE 100, and DAX, among others. Each index represents a different market or a specific group of stocks. The FTSE100, for example, is a share index of the top 100 companies listed on the London Stock Exchange that have the highest market cap.

Investors will often gauge whether the market has had a good or bad day based on whether the index has increased or decreased.

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