What are CFDs
World indices are indicators of price changes for a certain group of securities. The stock exchange index can be explained as a “basket” of shares united by a common basis. Trading indices can be compared to opening positions on the courses of several dozen stocks at once.
The most important thing is determining the exact stocks or bonds each index is formed from. The set of shares included in the spot index value calculation determines the information that can be obtained by observing the dynamics of its course.
In general, the main purpose of world indices is to create a powerful indicator for investors to characterise the direction of companies’ quotes in a particular industry.
Studying the dynamics of major indices helps to understand the impact of certain events on the value of securities.
During trading indices, keep in mind that the reaction to the economic news published may not correspond with expectations and forecasts.
