The good thing about trading online is that you don’t have a specific set of assets that you are stuck with. In fact, you have a variety of assets that you can trade and make great additions to your portfolio. When you choose us your online trading partner, you get to trade a variety indices as well. These indices come from various regions of the world. In other words, you are not limited to the indices from the American markets. Within this category, you can trade dozens of options and diversify the “indices” side of your portfolio.

Understanding Indices Trading

When you trade indices, you are actually dealing with stocks. However, you can say that stocks are traded in an a la carte fashion whereas indices are traded as bucketed assets. They are not really assets per se, but they are measuring the performance of a certain group of assets in the stock market. An index can be created with similar companies based on their revenue or the industry they operate in. When you trade indices, you are trading many different stocks from a variety of companies at the same time. We give you access to some of the world’s most famous indices, such as S&P, FTSE 100, NASDAQ, DOW Jones, DAX, etc.

The stocks of which you are measuring the performance in the form of indices come from various exchanges. Keep in mind that different countries of the world have their own exchanges. They create their own indices. The prices of the indices might not go up or down as fast as the prices of stocks go. You can take the example of DJIA, which stands for Dow Jones Industrial Average. This particular index is more like a US asset and you will be looking at the cumulative performance of 30 different companies when you this index going up and down.

Why Trading Indices

Indices add an extra layer of diversity to your trading portfolio. The best thing about them is that they are usually not as volatile as other assets. When you trade indices, you are trading many stocks from many companies at the same time. So, what this means is that when one company starts performing poorly, the index does not get affected. On the other hand, if you were trading the stocks of that company alone, you would lose your investment. You won’t face the same fate when you are trading indices.

Another great thing about indices is that you can pick indices from several exchanges from around the world. These assets are not so volatile so you can get some good leverages while trading them. They prove to be a great way for you to include several stocks in your profile with just one index. Successful indices trading also shows your experience and understanding of a particular industry. Trade dozens of indices when you sign up with us and use our huge leverages to amplify the profits you make on your successful trades.