Indices Trading

What Are Indices?

Global indices serve as key indicators of the performance and direction of companies within specific sectors or entire economies. Traders typically use indices to speculate on the overall performance of a market or as a way to hedge against losses in their individual stock holdings. For instance, if a trader expects the UK market to perform well, they might choose to buy the FTSE 100 index rather than purchasing each of the constituent stocks. Conversely, they might sell the index if they believe the market will decline.

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