An index is a portfolio of top company stocks from a particular country that tracks the performance of their market or exchange.
A stock index is a very important part of our financial world but trading real stocks can be unmanageable and costly. At IGM Forex, we offer our clients the ability to trade their favorite indices like the S&P 500, FTSE, DAX, CAC40, DJIA, and NASDAQ, as CFDs on indices, which is the most common way brokers offer access to the stock market. One of the most popular indices to trade is the S&P 500 as it is one of the world’s best known. It is commonly used as a benchmark for other markets like the Dow Jones Industrial Average (DJIA).
- S&P 500: Standard & Poor’s 500 is an American stock market index which is an index of 500 stocks. The S&P 500 was developed and continues to be maintained by S&P Dow Jones. It is designed to be a leading indicator of US equities.
- DOW JONES: The Dow Jones Industrial Average was created to provide a clear view of the stock market and therefore the US economy. It consists of 30 component companies that are manufacturers of industrial and consumer goods.
- NASDAQ: The National Association of Securities Dealers Automated Quotations (known as Nasdaq) is an American stock exchange that is ranked the second largest exchange in the world by market capitalization.
- FTSE 100: The Financial Times Stock Exchange 100 Index represents the largest 100 qualifying UK companies traded on the London Stock Exchange with the highest market capitalization.
- DAX: One of the most popular indices worldwide, DAX is a German stock index which consists of the 30 main German companies which are trading on the Frankfurt stock exchange. DAX is mainly calculated as a performance index, making the DAX index unique.
- CAC40: CAC 40 Is a benchmark index for the Paris stock exchange as it reflects the performance of the 40 largest and most actively traded shares listed on Euronext Paris. It accounts for 20% of market capitalization in the Eurozone and is the most widely used Index.