Indices offer a way to gain exposure to the financial markets. Understand what indices trading is and learn about investing in key indices such as the S&P 500, FTSE 100 and the DAX 40. Discover what can impact the price of an index and some of the risks attached to trading them.
Is it possible to trade an index?
Not very practical at all. It wasn't until the first financial derivatives in the 1970s and the advent of stock index futures that trading an index became possible. Stock index futures are mainly for large financial institutions and only the most affluent of traders.
Which platform should you choose to trade stock indices?
Now you understand the basics of index trading, you have a good overview of global stock indices and you have some insights into trading time frames. So which platform should you choose to trade? A good option for trading stock indices online is MetaTrader 4 and MetaTrader 5.
What are the most actively traded indices?
High-profile, benchmark indices of the world’s leading stock exchanges are the most actively traded indices. S&P 500 Index: Tracks the stock performance of the 500 largest companies listed on stock exchanges in the US. FTSE 100 Index: Tracks the shares of the 100 largest companies listed on the London Stock Exchange.
