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Indices Trading
Overview of Indices Trading
Indices are a popular form of CFDs that enable traders to speculate on the price movements of stock indices without buying shares in the underlying assets. In this way, indices trading is similar to trading stocks, currencies, or commodities..
What are Indices?
Indices are baskets of stocks that are ranked by independent institutions such as Standard & Poor's, FTSE Group, and Deutsche Börse. Trading indices involves speculating on the price movements of well-known indices such as the FTSE 100, Dow Jones, and DAX. When traders place trades in these indices, they are essentially betting on the performance of a basket of individual shares instead of a single asset.
Overview of the Market
Benchmark indices significantly impact global economies and are considered reliable indicators of their economic health. The global indices market is dominated by these benchmark indices that are specific to a country or region.
iFX provides traders with the opportunity to trade major indices from different regions across the world, such as the UK, US, Asia, Australasia, and Europe. Traders can go either long or short on price movements in these markets, depending on market conditions they identify.
Trading indices provides not only access to a single sector but also exposure to a variety of different types of companies, making it a potentially lower risk as well as a high opportunity market.
At iFX, You Can Trade a Wide Range of indices. Here are some of the most heavily traded live indices markets available:
- The Australia 200, or S&P/ASX 200 Index, is the benchmark stock market index in Australia.
- It comprises the 200 largest stocks by float-adjusted market capitalisation.
- Considered the main benchmark of the S&P/ASX family of indices published by S&P Dow Jones.
- The Europe 50, or Euro Stoxx 50, is a stock index consisting of the 50 most liquid stocks traded in European markets.
- It represents companies from 11 European countries and is denominated in euros.
- Managed by Deutsche Börse, the German stock exchange company.
- The France 40, or CAC 40 Index, is a benchmark French stock market index.
- It includes the 40 most significant stocks among the 100 largest market caps on Euronext Paris.
- One of the main national indices of the pan-European stock exchange group Euronext.
- The German 30 is a popular European index that reflects the performance of companies traded on the Frankfurt Stock Exchange.
- It is ordered by market capitalisation and managed by Deutsche Börse.
- Includes major German companies like Adidas, BMW, Deutsche Bank, and Siemens.
- The Hang Seng China 50 Index represents the top 50 China-based companies listed on the stock exchanges of Hong Kong, Shanghai, and Shenzhen.
- It covers A shares, H shares, Red Chip and P Chip shares, representing various types of companies.
- The Japan 225, or Nikkei 225 Stock Average, is a leading index of Japanese stocks.
- It includes the top 225 blue-chip companies traded on the Tokyo Stock Exchange.
- Equivalent to the Dow Jones Industrial Average in the United States.
- The Spain 35, or IBEX 35, is a benchmark index tracking the performance of the top 35 stocks listed on the Spanish Stock Market.
- Launched in 1992, it is a free-float capitalisation-weighted index.
- Calculated by Bolsas y Mercados Españoles (BME) and reviewed quarterly.
- The UK 100, managed by the FTSE Group, is one of the most popular indices markets.
- It includes stocks from well-known British companies across various sectors.
- Offers a diverse range of companies, making it less sensitive to individual stock volatility.
- The US SPX 500, or S&P 500, is an index with 500 top U.S. companies.
- Stocks are chosen primarily based on capitalisation, liquidity, and sector classification.
- Representative of approximately 80% of the total value of the U.S. stock market.
- The US Tech, or NASDAQ, is an index composed of 100 major companies.
- Primarily focused on the technology sector but also includes companies from aviation, consumer services, healthcare, and more.
- Includes well-known companies like Apple, Tesla, Cisco, and Microsoft.
- Wall Street refers to the Dow Jones Industrial Average Index, consisting of 30 iconic brands and companies.
- Represents a diverse range of sectors, making it less susceptible to extreme volatility.
- Some of the companies within this index include Apple, Coca-Cola, Microsoft, and Walt Disney.
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