Stock indexes are a popular trading vehicle, but they can’t be traded directly. An index is simply a collection of stocks (or other asset) that moves according to the stocks held within it. Traders can analyze both the index and the futures/options contract they are looking to trade.
A stock index or stock market index is a measurement of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.
Indices traders speculate on price movements in stock Indices like the FTSE 100, the Dow Jones and DAX.
These well-known Indices are essentially baskets of individual Shares which are often ranked by independent institutions like major banks or specialist companies like Standard & Poor’s, the FTSE Group and Deutsche Börse.
So to trade indices like a pro, all you would need to do is:
Sterling Holdings Ltd. provides online trading services via its brand “Revolve Markets” and its billing agent and revolvemarkets.com website and domain registrar. The Company provides its services through a trading platform/electronic system for online trading on the investment market. Trading in the investment markets online is speculative and carries a high level of risk, thus may not be suitable for all investors. If you are thinking of trading online in the investment markets, you should be aware of all the risks associated beforehand and take your investment objectives and level of experience into consideration. You should not speculate with capital that you can’t afford to lose, as there is a possibility you may lose some or all of your invested capital. Please note that revolvemarkets.com and its partners and associates, do not accept clients or client funds from the US and North Korea. Read our full risk discolure.
Copyright Revolve Markets 2021