Stock Index

Index is a stock index, which is a relative indicator reflecting the stock price changes in different periods. Its price changes and the profits or losses caused by price changes are reflected and proposed by CFD (Contract for Difference). In foreign exchange transactions, indexes are traded with margin, and profits or losses are determined by the buying and selling prices. Compared with stocks, index trading does not require customers to invest all funds to trade freely, and can be traded in both directions, long and short, while enjoying all the benefits and risks brought by market fluctuations.

Trading index in UACTCTK

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About Stock Index Trading

Stock indices, or stock indices as they are commonly known, are actual stock market indices and are measures of the value of a particular segment of the stock market. They are calculated based on a weighted average of the prices of selected stocks that belong to the actual category they represent. Stock indices can represent a specific stock market, like the NASDAQ, or they can represent a cluster of the largest companies in a country, like the US S&P 500, the UK FTSE 100, or the Japanese Nikkei 225. The purpose of an index is to show the general economic direction of a particular stock market or a country. However, since stock indices are made up of many companies, they can be greatly affected by the decisions of one particular company or a particular industry. The weight that each component of an index holds varies from index to index, which means that the calculation method for each index is different. Price weighted and market capitalization weighted are the two main calculation methods for calculating the weight of the components. Below you can see some very popular index categories:

1.Dow Jones (US30) and Nikkei 225 (Japan225) are price-weighted indices.

2. FTSE 100 (UK 100), ASX200 (Australia 200), Hang Seng Index (Hong Kong 50), DAX (Germany 30), CAC 40 (France 40) and IBEX35 (Spain 35) are some of the major market capitalization weighted indices.