Indices are a grouping of stocks that represent specific economic sectors or regions. Find out how to profit from investing in indices.
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Indices are a group of stocks that track a specific economic sector or region. For example, the S&P 500 tracks the 500 largest companies in the United States. Investing in indices provides you with instant diversification and exposure to an entire economy or sector with a single market position.
Traders use CFDs to invest in indices which allow them to capitalize on the fluctuations in the markets. Investors are attracted to indices due to the increased liquidity as well as more trading hours compared to other markets. Also, indices generally require less research to make informed decisions.
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