What are stock indices and how can they be traded? Indices are stock market indicators, which reflect the behaviour of securities of a certain group of companies. You surely know the most famous stock indices are: Dow Jones Industrial, Standard & Poor's 500, Nasdaq Composite, NIKKEI, DAX 30.
They are not financial assets, but they can be traded using futures contracts. By using them you earn both on growth, and on the fall of the stock index. When trading indices markets participants bet on changing of the index of the underlying asset in the direction of reduction or increase. If their forecast is correct, they make a profit.
Remember, that index futures for indices are derivative financial instruments.
With Trade100fm you can trade futures for indices. We offer you the best trading environment. You can use a leverage service, hedge positions, you have access to a multifunctional trading platform, etc. The list of our advantages includes:
- low spreads;
- support service 24/5;
- no additional commissions and fees;
- absence of requotes.
Novices can trade on a demo account. It is a training deposit where you can get the necessary trading skills and track the behaviour of the asset of interest.
Also, you can use the help of our experts when analyzing the situation on the stock market. They will inform you when it’s the best time for purchases or sales. Start earning on the stock indexes with Trade100fm right now!