stock index
Access global stock indices with exclusive trading conditions
What is a stock index?
A stock index is a group of stocks that can be bought or sold as a single trading instrument. Now, some traders speculate on how the prices of individual assets will change, and some choose to speculate on stock indices. As a whole, stock indices can be used to represent the health of an industry or even a country.
Classifying stock indices is a bit more complicated, though. some indices, such as DAX 30, an overall group of the 30 best-performing companies in Germany. It is listed as a "national stock index", indicating the health of the German stock market.
However, the stock index does not only include stocks combined by geographic location. Some stock indices represent and track the performance of certain sectors of the market. For example, the Nasdaq 100 Index tracks the performance of all companies listed on the Nasdaq exchange. Usually tech-related companies, so the Nasdaq shows the health of the tech industry in the US!
Why trade stock indices with GFS.LE?
Our goal is to help our traders succeed by providing an exceptional trading experience.
- low spread
- Trading all day
- Get more than 14 indices.
- The average operating speed is 0.20 seconds.
- All trading strategies are available.
- Leverage up to 1:100.
How to trade stock indices
Since a stock index is composed of groups of companies, there are many factors that affect the price of the index. Simply put, if the stocks that make up the index go up in value, then the price of the index goes up, and vice versa.
Traders who use stock indices to forecast are able to decide whether an index's value will increase or decrease based on market sentiment.
The price movement of an index may be smoother than that of other financial instruments, because a single stock cannot bring about a huge price surge. However, stock indices are also subject to significant volatility, as they can reflect a wide range of political and economic changes.