Indices are a measurement of the price performance of a group of shares from an exchange. For example, the FTSE 100 tracks the 100 largest companies on the London Stock Exchange. Trading indices enable you to get exposure to an entire economy or sector at once, while only having to open a single position.
Indices price movements and volatility are impacted by factors like political events, major factors which affect companies in a particular sector, economic data like employment figures and big changes in the currencies markets.
Are Indices trading for me?
Trading global Indices with ETX allows you to go both long and short on price movements in major Indices from the UK, US, Asia, Australasia and Europe.
You will also benefit from market movement across not just a single sector, but a wide variety of different types of companies, providing greater opportunity as well as potentially lowering the risk of exposure to extreme volatility.
What are the most traded indices?
1. DJIA (Wall Street) – measures the value of the 30 largest blue-chip stocks in the US
2. DAX (Germany 40) – tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange
3. NASDAQ 100 (US Tech 100) – reports the market value of the 100 largest non-financial companies in the US
4. FTSE 100 – measures the performance of 100 blue-chip companies listed on the London Stock Exchange
5. S&P 500 (US 500) – tracks the value of 500 large cap companies in the US