Indices are purchased through derivative financial vehicles such as Exchange Traded Funds, or ETFs, and Contract for Differences, or CFDs. Because indices on their own are used to rate the profit or loss of a group of financial assets, they are not measured in currency, but rather in points.
Spreading risk over an index is the easiest way to protect from critical losses. Talking with our account experts today can be the path for you to expand into this lucrative field.
Stocks and commodities are also grouped by indices, as stock indices and commodity indices respectfully. Within these, it’s possible to trade using CFDs and ETFs, which act as grouped assets being traded together. Some of the more popular and well-known indices include the Dow Jones, DAX, and S&P 500. The benefit of exploring indices investments is that while a single company or industry may experience a loss, others stand to gain, thus balancing out the risk of loss for the investor.