In stock index trading enables you to do is to invest in a very large segment of a market, or even an entire market itself. For example, you have the option of investing in the NASDAQ, the Dow Jones, or the S&P 500, among other indices, all of which reflect different broad market properties. By investing for instance in the Dow, you would be investing in a significant portion of the industrial market.
Indices give you opportunity to trade Stock Index 24 hours per day, You'll have one single-click access to global futures market, anytime from anywhere. Stock index are an indicator used to measure and report value changes in a selected group of stocks.
How a particular stock index tracks the market depends on its composition the sampling of stocks, the weighting of top-performing individual stocks, and the method of averaging used to establish an index.
Stock exchanges are organizations that provide facilities for brokers, corporate and individual investors to trade stocks, futures, options, bonds and other financial instruments. All the instruments quoted on the regulated markets are standardized, that means typical nominal value, time to expiration, margin requirements and other typical characteristics. Contracts for shares and stock index, instruments that reflect the overall market conditions are also being offered on the Over The Counter Market (OTC). The advantage of stock index trading is available in mutual funds and exchange-traded funds. But you should consider stock index futures instead for two main reasons: flexibility such as sell as easily as you can buy and leverage.