What is Indices trading?
Stock Indices refer to the weighted averages derived from a group of companies which are listed on an exchange. Basically, it refers to the average of a group of stocks from different companies. Indices have gained popularity over the years as they reduce volatility for traders, as they denote performance of stocks of a group of companies rather than just one. Indices trading involves speculating and trading based on the price movements of these stock groups. Also, since Indices are based on the average performance of several companies and assets, they have no physical basis to trade.
Some of the world’s most popular Indices are Dow Jones Industrial Average, Nasdaq S&P500, DAX 30, Nikkeri 225, EURO STOXX 50 and more.