Indices like DAX and CAC are grabbing headlines in the financial markets on a daily basis, but what are indices and will they serve you to maximize your profits? Let’s start from zero, Indices are a group of stocks from the same industry. They provide access to a certain industry performance.
Are you trading indices for the first time?
The first index was created in 1885, by Dow Jones and co-founder Charles Dow, summing the prices of the compounded companies and dividing it by the number of companies. This is very simplistic considered nowadays, but back in time, it revolutionized the market more than 100 years ago, and brought into light a new financial instrument.
Nowadays, indices use different ways to define their price, which can be categorized in two groups: Market value weighted indices, which are calculated based on the total market value of the compounded companies. The bigger the company, the larger the impact. The classic examples are FTSE and DAX. Price weighted Indices, which are calculated based on the company share price. So, companies with higher share prices have more impact on the overall performance of the index compared to other companies with lower share price.
Transparent trading conditions
Our trading conditions are transparent, written in the account types section, and legal regulations also. For any additional questions you will have a dedicated conversation with your personal account manager, who will be by your side during the time you are trading with us.
Advanced Financial Tools
Available financial tools enable traders to have what they need to control, manage their account, fund, withdraw, define stop loss and take profits. Technical indicators which will give a full picture of the asset's historical prices.
Risk Management Functions
You cannot avoid the risk, but you can manage it in order to minimise its effects. There are two automatic functions, stop loss and take profits which will close the positions when a certain level of price is met. You will limit the losses and maximise the profits.
Free updated information
Economic calendar and the news are 24/7 available on the platform. Take advantage of any event or news which will influence the prices before and after it happens. Never underestimate the power even of the smallest events.