Indices serve as benchmarks to measure the performance of a specific market. They represent a basket of stocks that derive their value from the index's performance.
Risk Comparison
Since indices track a group of stocks, they are generally less volatile than individual stocks. Making them an good option for risk-averse traders.
Global Markets
Indices like the S&P500, FTSE100 and Nikkei225 provide exposure to global markets without needing to trade individual foreign stocks.
Market Trends
Indices typically provide a snapshot of the overall market performance, making them ideal for traders with a good understanding on macroeconomic trends rather than company-specific news.
.svg)
