Indices, or indexes, measure the price changes of a particular group of stocks over time. They allow trading the value of many companies as a single product. Stock market indices are also used to track how an industry, economy, or sector performs in general.
Here are some of the world’s major indices:
Dow Jones (US30) – tracks 30 large, publicly traded US companies
S&P 500 (US500) – tracks 500 large-cap US companies
FTSE 100 (UK100) – tracks the 100 largest companies listed on the London Stock Exchange
Australia 200 (AU200) – tracks the 200 largest companies listed on the Australian Securities Exchange
Nikkei 225 (JP225) – tracks the 225 largest companies listed on the Tokyo Stock Exchange
As the index is basically a figure that reflects the health of the market or economy, it cannot be bought or sold directly. Thus, you can trade indices via CFDs (Contracts for Difference), ETFs (Exchange-Traded Funds), index funds, index futures, or options.