Stock indices follow and measure particular baskets of related stocks. Indices provide an accurate and efficient way for investors to track overall market trends. They are also profitable assets. The advantage of trading in indices over individual stocks is that they offer exposure to an entire industry. Investors do not have to perform research on particular companies; they only need to take a bullish or bearish position, depending on the overall market sentiment.
For risk-averse and longer-term traders, indices investing allows for comfortable and productive diversification. Instead of investing in just a few stocks, where risk is multiplied, investing in indices reduces the risk of a single company to impact negatively on a trader’s entire portfolio.
With Prime Trades, you can trade in the most popular and frequently traded indices in the industry today. These include:
- S&P 500 – the value of the Standard & Poor 500 is based on the share prices of 500 leading US-based companies;
- DJIA – this index is the weighted average price of 30 most significant stocks traded on the NASDAQ and New York Stock Exchange (NYSE);
- NASDAQ 100 – it represents the value of 100 non-financial NASDAQ-traded companies;
- FTSE 100 – the FTSE 100 is a collection of 100 of the largest publicly-traded UK companies;
- DJ EURO STOXX 50 – Euro Stoxx 50 collects together 50 of the largest European companies’ share value.
Once a trader becomes experienced enough, he can decide whether or not to trade in indices and which of them will be more suitable for his or her portfolio. Prime Trades offers the best conditions in the market, including the possibility to hedge positions, access to the multifunctional trading platform, low spreads, and a leverage of up to 1:100.
Mind also that our company takes no additional fees for its services. Our support service specialists are ready to help you 24 hours a day. If you lack experience in this field, you can open a demo account and get some practice without risking real money.
Start earning on the stock indices with Prime Trades right now!