How to trade Stock Indices CFDs?
Index trading is the buying and selling of a specific stock market index. Traders speculate on whether an index’s price will rise, or fall based on market sentiment.
An index merely represents the performance of a group of stocks, and by trading indices you are essentially trading the average performance or price movements of the group of stocks, not the actual stock.
When the price of the companies’ stocks within an index increases, the value of the index goes up. On the contrary, If the price falls, the value of the index will drop.