Trading is not simply confined to currencies, commodities and stocks. Traders now have the ability to trade the movement of entire indexes and this is growing dramatically in popularity.
Whether you have your sights on the Dow, Dax, Cac or FTSE, many traders are capitalising off the back of this extended offering and are able to trade them in a similar fashion as they would their traditional range of traded asset classes. Furthermore, the ability to make money from falling markets as well as rising markets gives traders the ability to battle-proof their portfolio by hedging.
Yes, it is now virtually possible to trade any index in the world at the click of the button.
Top 7 reasons to trade stock indexes
- Adds flexibility to your trading/investment portfolio
- Potential of gains using leverage
- Easy access – can trade electronically
- Can be used to hedge for a stock portfolio in a falling market
- Enter and exit positions quickly and cost effectively
- Transaction costs are typically lower than the cost of trading stocks
- Anyone can learn it!