An index is a collection of stocks that represent a particular industry or market sector. Trading indices means trading many of the companies on the stock market at once, rather than picking few individual shares. Index trading is perfect for traders looking to trade broad market segments instead of individual company stocks.
Trading CFD indices allows you to speculate on the direction of movement of the underlying index, without actually having physical ownership of any shares. When you trade indices, you get to trade both bullish and bearish price moves, giving you greater trading opportunities. Costs are much lower, since you don’t actually own the asset.
Stock market indices give the measure of a specific stock market. Traders speculate on the price movements of financial instruments indices to earn returns when the indices rise in value. Great flexibility of indices trading allows you to open and close positions over a much larger time period, giving you much more choices.