What Are Indices
An index is defined as a portfolio of stocks that represents a particular market or market sector. It is usually made up of company shares that are listed together on the same exchange. These groups are often mentioned in the news media. They are used to measure how a particular market or exchange is performing.
Investors trade indices in the hope of profiting from their growth and adding diversity to their portfolio. To trade indices, traders can go long on a particular index if they believe that stocks in that market are likely to increase overall in the future, or go short on an index if they predict that the index is likely to drop in value.
Trading indices means trading multiple company shares across multiple industries. For example, companies like Volkswagen and Adidas fall under the German DAX index. The companies in the DAX index are the most valuable companies listed on the German Deutsche Bourse stock exchange.
Why Trade Index CFDs With NetMarkets
NetMarkets offers each trader the chance to trade from 0.10 lots. This means a trader can begin trading at 0.10 of the index price – it means that every trader, in any level, is being provided with accessibility.
A deposit of just 1% of the price of the trade is also required. Traders can profit from falling markets through short-selling the indices, as well as the rising markets.
Trading Index CFDs with NetMarkets gives traders a greater exposure to the market and makes the process of share trading more liquid.
NetMarkets offers an extensive selection of global indices.
The golden trial of NetMarkets approach: There are no commissions, no hidden fees and no conflicts of interest when the trader success is on top of priorities.
Leveraged trading: each trader can gain a large exposure to diversified markets with a relatively small amount of invested capital.
Traders can enjoy the diversity of trading the multiple companies in the index, and trade in multiple indices across the UK, Europe, and the US global.