What Are Indices?
Indices are benchmarks that measure the performance of a group of stocks representing a particular market, industry, or region. For instance, the S&P 500 tracks the performance of 500 large-cap US stocks, while the NASDAQ Composite focuses on technology and internet-related companies.
Trading Indices
Trading indices involves speculating on the direction of an index’s value. Investors can take positions based on whether they anticipate an index’s value to rise or fall. This allows for exposure to multiple companies within a single trade, providing diversification and reduced volatility compared to individual stock trading.
Popular Indices
- S&P 500: Tracks 500 of the largest publicly traded companies in the US across various industries.
- NASDAQ Composite: Focuses on technology and internet-related stocks listed on the NASDAQ stock exchange.
- Dow Jones Industrial Average (DJIA): Comprises 30 large-cap US stocks, representing diverse sectors.
Index Futures and CFDs
Investors can trade indices using instruments like futures contracts or Contracts for Difference (CFDs), enabling speculation on both rising and falling markets without owning the underlying assets.
Benefits of Index Trading with Sanabil Capital
Trading in diverse indices.
Enjoy tight spreads.
Swift execution for your trades.
| Index | Description | Market Type | Region |
|---|---|---|---|
| Dow 30 Futures | Futures contract based on the Dow Jones Industrial Average | Futures | US |
| NASDAQ 100 Futures | Futures contract based on NASDAQ 100 | Futures | US |
| S&P 500 Futures | Futures contract based on S&P 500 | Futures | US |
This table provides an overview of both spot and futures indices from the US and Europe, along with a brief description of each index, the market type (spot or futures), and the region it represents.
