Indices

Trade the most popular Indices around the world like NASDAQ, Dow Jones and S&P 500 with leverage and ultra-competitive spreads.

Access to over 10+ major global indices from across Europe, Asia and America.

Indices Trading

What is Indices Trading?

Indices trading involves tracking the performance of a group of securities or assets combined into an index. These indices can be categorized based on asset class, industry, market capitalization, geographical location, and more, providing a broad overview of market performance.

Engaging in index trading through Contracts for Difference (CFDs) allows traders to profit from the upward or downward movements of a diverse collection of assets. 

Popular stock market indices traded include:

  • Dow Jones 30 (US 30)
  • S&P 500
  • GER30
  • US Tech 100

Moreover, indices serve as benchmarks for comparing individual securities or portfolios, enabling investors to track market trends and make informed decisions when trading indices. This comprehensive market perspective helps traders strategize effectively based on broader market movements.

Why Are Indices Important in Investing?

Indices provide valuable insights into the overall health of a country’s economy, making them essential tools for investors. For instance, investors in the United States may analyze the S&P 500 to assess the economic climate, while UK investors might look to the FTSE 100, and German investors to the DAX 30 for similar evaluations.

Understanding Long and Short Positions on Indices

While you cannot invest directly in indices, you can take long or short positions through Contracts for Difference (CFDs). Going short on an index involves selling the product with the expectation that its price will decline. Conversely, going long means buying the product in anticipation of a price increase. The advantage of trading CFD indices lies in the ability to profit from price movements in either direction, offering flexibility to capitalize on market trends.

What Influences the Price of an Index?

The price of an index is primarily driven by the price movements of the companies that comprise it. Several key factors contribute to these price changes, including economic data releases, geopolitical events, and overall market sentiment.

When investors are optimistic, or bullish, there is typically a higher demand for stocks, resulting in increased stock prices and a rise in the index’s value. On the other hand, when investors are pessimistic, or bearish, there tends to be a greater number of sellers, leading to a decrease in stock prices and a decline in the index’s value.

In essence, if more stocks within an index experience price declines, the overall index will likely fall. Conversely, if more stocks see price increases, the index value will likely rise.

Most Popular Indices

Trade Indices with ALS Markets

Three types of accounts, catering to every trader, whether you are a beginner or experienced.

Nano Account

$100/ Min Deposit

Ideal for new and intermediate traders

Standard Account

$1000/ Min Deposit

Tailored for experienced traders

Pro Account

$25000/ Min Deposit

Suited for Seasoned Traders & Investors