What is Indices CFD Trading?
An index is a method to track the performance of a group of assets in a standardized way. Indexes typically measure the performance of a basket of securities intended to replicate a certain area of the market. These could be a broad-based index that captures the entire market, such as the S&P 500 Index or Dow Jones Industrial Average (DJIA), or more specialized such as indexes that track a particular industry or segment.
Indices are the most popular form of CFDs. Monzo Futures has a large range of Indices from around the world to choose from, including the Australian S&P 200 Index, UK FTSE 100 Index, US E-mini S&P 500 and US DJIA Index.
A stock index is a good indicative measure of market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue chip stocks listed on the exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index. Indices have the advantage of allowing traders to take a wider view of a basket of stocks rather than taking a view on one individual stock alone. Online CFD and futures based indices are offered on both Monzo Futures MetaTrader 4, 5, and BullCopytrade Platforms.
