What is Index Trading and How Does it Work?
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An index measures the performance of a group of stocks, like the NASDAQ 100, which tracks 100 major companies on the Nasdaq exchange.
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You can't invest in an index directly, but you can trade it using CFDs. This allows you to profit from predicting index movements without owning any actual stocks by opening a long (Buy) or short (Sell) position.
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Index CFDs also offer leverage, enabling you to control larger positions with less capital. However, this increases both potential profits and losses. Trading indices is relatively simple as it focuses on market direction overall.
