Unlike forex or commodity trading, index trading can appear to be quite an abstract concept. In forex we invest in currencies, in commodity trading we invest in commodities such as gold and silver, An index is basically a figure that reflects the health of a market or an economy, so how can we actually invest in a number?
When you invest in an index you are investing in a fund that mirrors the movement of the index. Options’ trading enables you to invest in a very large segment of a market, or the entire market itself. For example, in stock index trading, you have the option of investing in the NASDAQ, the Dow Jones, or the S&P 500, among other indices, all of which reflect different broad market properties. By investing for instance in the Dow, you would be investing in a significant portion of the industrial market. You can diversify your portfolio with index futures trading, alongside your other trading activity using eToro. Instead of searching for a decent trading system out of the thousands of systems online to provide you with index trading services, you can start trading indices online today with the same visual and user friendly eToro interface that you’re already familiar with.
A list of Stock Market Indices
There are free guides and exclusive trading course some companies will offer traders like eToro will help you learn about long and short term indices trading, index day trading, index arbitrage, index spread trading, and tranche trading strategies. Your personal account manager will also be more than happy to give you an insider look at index trading and help you develop and stick to your own index trading strategy.
