Indexes

STOCK INDEX TRADING

Stock indices serve as a catalyst for the economy of an entire region, specific industries and, in general, show how a particular area of ​​the market is developed and what potential it has. Working with stock indices as a trading tool is important because it offers advantages that other types of assets lack. In particular, the trader has an opportunity for more precise work. After all, there are a huge number of indexes. In most cases, they are composed in such a way that they can characterize the country's economy, the development of economic sectors, are grouped by similar companies, and so on. Thus, the trader can select the indices in which he understands the most accurately. For example, if you are well versed in American industry, then it will be difficult for you to trade the dollar,because it is influenced not only by this sector of the economy. But the use of the US industrial index in such conditions becomes very effective.

An important characteristic of assets is their high prediction. Indices are much easier to work with than currencies, commodities, or stocks. This is due to the fact that in most cases a number of large companies are identified, and it is much easier to predict a particular industry than to deal with all the intricacies of a particular company. For example, the S&P 500 is calculated based on the shares of the 500 largest firms.

Trading is carried out 24 hours a day, 5 days a week.