It is important for new traders to note that rolling daily contracts apply charges to a trade for each night the trade is held open. You can select from over 20 different indices to trade on with via the ETX TraderPro platform. If you have an account with ETX Capital, sign in here to start trading. In its most regularly traded format, an index is defined as a portfolio of stocks that represents a particular market or market sector. DJIA, it can give a better representation of the condition of US stock market as a whole. To trade indices, traders can go long on a particular index if they believe that stocks in that market are likely to increase overall in the future, or go short on an index if they predict that the index is likely to drop in value. Many multinational corporations have their stocks listed on an index other than their domestic exchange. Each index is calculated in a slightly different way, but its value generally represents a weighted average of the current values of its component stocks. In contrast to rolling daily contracts, futures trading does not attract overnight fees. For more reading material on how to trade indices, we recommend our How to Trade on Indices and Index Trading Strategies pages.
Most major economies as well as developing economies have at least one financial index. Different indices can have a particular focus on certain types of stocks or market sectors. To open an account with ETX Capital, click here to complete our short registration process. Hang Seng index as well as the New York Stock Exchange. The value of an index is usually described in terms of a number of points.