You can hear people talking about the stock exchange everywhere – on television, radio, magazines along with the internet. But what will it mean when we say “the market has performed well today”? What’s “the stock market” anyway?
Very often, when most people discuss “the market”, they talk about stock indices. Using the growing importance of the stock exchange in our society, index names much like the Dow Jones Index, SP 500, CAC40 or DAX 30 have grown to be part of our everyday vocabulary.
In this article we will cover:
What’s index trading, along with what are stock indices?
The pros and cons of index trading
The earth’s most popular stock indices
The top index trading platform
Precisely what is index trading?
Most traders be aware of names and abbreviations of the main global stock indices, but perhaps not many are conscious of these they may also be traded via CFDs. In reality, stock index CFDs are unable to basically be analysed, however they can also be bought and sold in the same way to how stocks are traded.
Just what stock Index?
The stock index itself represents the price of a small grouping of stocks in one country, and shows the overall, current, and historic performance of that particular stock index.
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