A stock index represents the top shares from a particular exchange. For example, the Nikkei-225 represents the price-weighted average of 225 top-rated Japanese companies listed in the Tokyo Stock Exchange. Most of these are calculated using a capitalisation-weighted average, which means the size of each company is taken into account. The more a particular company is worth, the more its share price will affect the index as a whole.
There are many benefits that traders will have when they invest in an index rather than individual stock. First, the investor is able to gain exposure to all of the companies that are in the index without the need to buy into each individual company. This can save investors a considerable amount of money, while still giving them a great deal of diversity to their portfolio.
Another advantage of trading indices is that all indices throughout the world are linked between timezones. This means that the performance of the Eastern stock indices can potentially impact the opening performance of the Western stock indices. This creates excellent opportunities for traders who, with a bit of research on the overnight global market performance, can look for positions which will compliment this. An additional benefit of trading indices is that they are available 24 hours per day thus it offers round-the-clock opportunities for making profits.
Key features
- View performance of all the major world indices including America, Asia/ Pacific and Europe.
- View basic information of each index and related news to help you in making the right decision.
- Display the trading status of the indices, whether they open or closed.
- Quick access to other related trading tools developed by us.
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* Please note that the price of some of the indices might be delayed up to 20 minutes.