In much the same way that you trade shares, you can buy and sell what is called an index where the price is based on the average prices of the shares of all companies comprising an index. Indices usually specialize on one sector of economy and reflect the performance of this sector. Take for example, FTSE 350 Mining Index or KBW Bank Index.
Indices are often overlooked as preference is usually given to investing into forex or stocks. However, trading indices can be a good way to diversify a trader’s portfolio in a way that doesn’t require as much research as individual stocks. In other words, you don’t have to study endless tables showing the slightest movements of stock values.
Indices trading explained
Each share in the index contributes to the overall index performance. However, it doesn’t often happen that all shares within an index move in one direction.
Indices are simply a mathematical number that are great for market analysis, but you can’t invest in them directly. Instead, you can either buy their constituting shares, mirroring the composition of the index, invest through an index fund or an ETF (exchange-traded funds). Double.Trade offers you a chance to trade index CFDs, which is a money-efficient way to trade indices.
How to trade
To start trading simply create an account with Double.Trade, deposit funds to the account, sign-in to the app and go for it.
First, choose an index that you believe will appreciate and purchase a CFD. If the price of the index goes up, you will earn money for every point the index moves. If the price falls, you lose money for every point the index moves.
Why trade Indices?
Double.Trade makes sure you trade under the most advantageous conditions
Personal Trading Assistant
Highly qualified Double.Trade’s trading assistants are there to answer your questions 24/5. What is more is that you can speak to an assistant in your preferred language.
You choose the term
Indices are great for both long-term and short-term speculation.
Double Trade gives you an opportunity to trade with indices and pay no fees.
Trades indices from various market sectors, countries, and regions of the world to achieve easy diversification of your portfolio.