FP Markets Podcasts Series

Index Trading: A Beginner's Guide

FP Markets

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0:00 | 6:05

A stock index is a range of stocks, collected in what’s known as a basket, to track a market or sector. The Dow Jones Industrial Average tracks the value of 30 publicly-owned companies listed on the NASDAQ and the New York Stock Exchange (NYSE), for example.

Stock indexes cannot be traded directly. Trading products are, however, available via CFDs (contracts for difference), ETFs (exchange traded funds), index futures or options.