Forex index (stock) is a market indicator that is used to assess the behavior of a group of shares and illustrates the average change in a particular portfolio of securities. The value of the exchange index is the estimated value, which is formed on the basis of the prices of all the shares. It includes in the calculation of this index, which are traded on this exchange. Depending on the selected indicators, stock index indices allow to get an idea about the changes within a single sector or the entire forex market as a whole.
The change in the index over time allows not only to analyze the general state and direction of the market, but also to make money on trends. Trade in the index itself is impossible. Deals on direct sale and purchase are carried out using standardized futures. Buying or selling index futures, the parties to the deal are betting on a change in the base index. This opening a long or short position on this futures, conditionally buys or sells a block of shares in the companies that make up the index.
Trading stock indices are also carried out using the same CFD, the price of which is determined by the values of the corresponding indices or futures. The main advantages of trading CFD on indices is the ability to trade fractional lots and invest a small capital using leverage.
PBN Invest offers to trade CFDs for major world stock indices such as Dow Jones Industrial Average, S&P 500, Nikkei 225, FTSE 100, DAX 30, Euro Stoxx 50, etc.