What is Stocks Index?

What is Stocks Index?

What is Trading Index?

Index trading is one type of futures trading which consists of a combination of the majority of selected stock shares in a country. The index functions as an indicator of the overall price movement of the shares it represents. Not much different from other types of futures trading, because they do not have assets to make transactions, the contract value is the main reference. The size of the contract value in index trading is determined based on units commonly known as lots.


Dow Jones Industrial Average (DJIA), USA

The Dow Jones (symbol> DJ) is a stock index created by Wall Street Journal and its founder, Charles Dow. The DJIA is the most popular and most desirable stock index in the world. This index is made up of the world's top 30 blue chip companies.

Standard & Poor's 500 (SPX), USA

The Standard & Poors 500 (symbol SP) is a broader stock index consisting of the top 500 US companies. Some traders and investment managers prefer to trade the S&P 500 over the Dow Jones stock index because it is quite liquid and has high fluctuation.

NASDAQ-100, U.S.

The NASDAQ stock index (symbol NQ) is also one of the most popular stock indices in the world. Most of the companies listed on this index are technology stocks and are sometimes referred to as the Technology Index. Market observers and players use this stock index with the same purpose, namely as a stock indicator.


READY FOR TRADING?

FAQ

Foreign exchange, also known as Forex or FX, is the market in which currencies are traded. The Forex market is the largest and most liquid financial market in the world, open 24 hours a day, five days a week. To put this into perspective, the New York Stock Exchange handles about $ 169 billion in transactions every day, while the Forex market far exceeds that up to $ 5 trillion per day.
Forex is traded in the form of currency pairs. Common currency pairs are Euro / US Dollar, US Dollar / Japanese Yen, Great British Pound / US Dollar, and Canadian Dollar / US Dollar. You buy a currency and automatically sell the pair. The aim is to seek profit by buying and selling currencies as their value increases or decreases. There are many economic factors that contribute to currency movements which traders and analysts are trying to solve.
The Forex market is open 24 hours a day, 5 days a week and currencies are traded at major financial centers around the world. This market opens on Sundays (10:00 pm GMT), and closes on Friday (10:00 pm GMT):
- Sydney is open from 10:00 pm to 7:00 am GMT
- Tokyo is open from 12:00 am to 9:00 am GMT
- London is open from 8:00 am to 5:00 pm GMT
- New York is open from 1:00 pm to 10:00 pm GMT
This depends on the leverage used and the amount of capital invested. You can invest as little as $ 50, or $ 50 000, and the sky's the limit. However, please note that as leverage increases, so does risk; ultimately it depends on the trader's tolerance and risk management. Skilled traders are able to minimize risk and maximize profit through in-depth analysis, trading strategies that match their style, and prudent financial management.
Unlike the stock market, the Forex market is not tied to a central exchange. Transactions are carried out between two parties via telephone or electronic networks, therefore the Forex market is considered to be the Over-the-Counter (OTC) or 'Interbank' market.
The main players in the Forex market - who make the spreads - are the major world banks; These banks include central banks, commercial banks, and investment banks. It is known as the interbank (interbank) market because they always carry out transactions with each other on behalf of themselves or their clients. However, the percentage of other market participants is growing rapidly and currently the list includes large multinational corporations, global financial managers, registered dealers, international financial brokers, futures and options traders and individual investors.
There are many factors that can contribute to currency prices. These factors include economic and political events and notifications, interest rates, inflation, natural disasters, and many more. There is even debate about the mass psychology of how traders view the market at any given point and time, which can contribute to how big a trading decision is and can have an impact on the market. While there is absolutely no "Holy Grail" and sure way of predicting price movements, there are some very meticulous techniques that analysts implement in order to predict potential price movements.
Reading this FAQ page is a great first step! Also make sure to check out the other educational content we offer such as - training programs, seminars, webinars and video tutorials. Opening a demo account is the first step towards successful trading, both beginners and experienced traders enjoy using the demo account to get to know the platform, test and refine trading strategies, and configure various add-ons, plugins, scripts and indicators. More importantly, you will see the market as it is on a live account and nothing beats hands-on doing your research. The demo account is free of charge and risk free. For more information please contact your account manager. If you don't have an account yet, please open a demo account, and you will be contacted by us shortly.
Usually you want the market to move in the direction you want it to. You can look for opportunities according to your preferences by analyzing the market in a variety of ways. Technical analysis involves trends, historical data and current price movements. It takes a more statistical approach to trading by examining charts and indicators closely. Alternatively, you have fundamental analysis which focuses more on important economic events and news, which may affect the market. In both cases, you should try to exploit potential price movements with trading strategies, wise decision making and smart financial management. The amount of your profit is based on the efficiency of the trading strategy, how well you learn to predict changes in exchange rates and their trends.
You only need a computer connected to an internet connection and a demo or real account that has been deposited. However, you need to be equipped with Forex education and tools to minimize risks to the Forex market.