Spot Indices Trading
Trade CFDs on popular Indices from across Europe, Asia and America.
What Are Indices?
World indices are indicators of price changes for a specific group of securities. The stock exchange index can be explained as a “basket” of shares united on an everyday basis. Trading indices can be compared to opening positions on the courses of several dozen stocks at once. The most important thing is determining the exact stocks or bonds from which each index is formed. The set of shares included in the spot index value calculation determines the information that can be obtained by observing the dynamics of its course .
In general, the primary purpose of world indices is to create a powerful indicator for investors to characterize the direction of companies’ quotes in a particular industry. Studying the dynamics of significant indices helps to understand the impact of certain events on the value of securities. During trading indices, keep in mind that the reaction to the economic news published may not correspond with expectations and forecasts.
For example, if there is a rise in oil prices, it is logical to expect an increase in the shares of all the oil companies. However, different stocks grow at various speeds, and some of them may not respond to such news at all. In this case, the spot index helps traders understand the overall trend of this market segment without the need to assess the position of many different companies.
Observation and trading indices give insights into how the different sectors of the economy trade in comparison with each other. Here at Giraffe, we are glad to offer the trading of CFD on major indices, which makes it possible to join the price movement not only for a rise but also a fall. Trading indices are popular among Giraffe traders due to their comprehensive terms, accurate quotes from several suppliers, and versatile analytics. After all, in order to understand the logic of the index behavior, you need to pay attention to the corporate news of each of the companies included, as well as to events affecting the wider industry as a whole.
