What are indices?

Indices (sometimes called stock indexes) indicate the value of a collection of assets or stocks traded on a certain market. Dow Jones Industrial Average, FTSE 100, CAC 40, and Dax 30 are some of the most important financial indexes. For identifying component stocks, different indices (or indexes) have their own criteria.

The Dow Jones Index is a price-weighted index of 30 big publicly traded businesses on the New York Stock Exchange, while the FTSE 100 is a market-cap weighted index of 100 of the UK’s top blue-chip corporations.

CFDs on the UK 100, US Wall St 30, France 40, and Germany 30 are available. The price of an index rises when the price of the equities listed on it rises. When the value of the stocks in an index declines, so does the index’s value.