Why Do You Trade In Indices? A Guide!
An indice is a measure of the price performance of a group of stocks on an exchange. Indices trading allows you to expose the entire economy or sector at once, while only having to open a single position. You can speculate on the rise or fall of indices without owning the underlying asset with CFDs. Indices are a highly liquid market to trade, and with more trading hours than most, you can benefit from longer exposure to potential opportunities. Start trading indices today with the Alpha Trading Hub account. How are stock market indices calculated? Most stock indices are calculated based on the market capitalization of the companies that make up them. This method places more weight on large-cap companies, which means their performance will affect the value of an indices more than small-cap companies. This method gives greater weighting to companies with higher stock prices, which means that changes in their value will have a larger impact on the current price of an index. 3 Important