Stock index

Stock Index

is a group of stocks that can be bought or sold as a single tradable instrument. Now, some traders think about how the price of an individual asset changes, but others prefer to speculate on stock indices. In general, stock indices can be used to indicate the health of an industry or even a country.
However, the classification of stock indices is a little more complicated. Some indices, such as the DAX 40, for example, are a group of 40 of the best-performing companies in Germany. Classified as a “national stock index”, it gives an indication of the health of the German stock market.
However, stock indices are not just made up of stocks grouped together based on their geographical location. Some stock indices represent and track the performance of specific market sectors. For example, the US Tech 100 index tracks the performance of all companies listed on the Nasdaq exchange. These are typically technology-related companies, and the US Tech 100 index gives an indication of the health of the tech sector in the US!

Why TRADE STOCK INDICES?

Our goal is to help our traders succeed by providing an exceptional trading experience.

How to Trade Stock Indices?

Because stock indices are made up of groups of companies, there are a number of different factors that influence the price of an index. Simply put, if the stocks that make up the index rise in price, then the price of the index will rise, and vice versa. Traders who speculate on stock indices can decide whether the index will increase or decrease in price based on market sentiment.
The price movement of an index is likely to be much smoother than that of other financial instruments, since one individual stock cannot cause a huge jump in price. However, stock indices experience significant volatility, as they can reflect broad political and economic shifts.
The trader is speculating that the index will increase in price. The stocks within the Index increase in value, increasing the value of the Index. The trader makes a profit.

Upcoming Stock Index Dividends

The stocks that make up the Index will periodically pay dividends to shareholders. When this happens, it affects the overall value of the Index, causing it to fall by a certain amount. We will ensure that your account is not materially affected if you have an open position by adjusting the dividend. We will either credit (if you are long) or debit (if you are short) your trading account for the amount you have incurred as additional current profit or loss due to the dividend adjustment.