Indices or Indexes are groupings of a specified number of stocks into one trade-able entity, either representing a particular market or portion of it. Although each stock can be bought and sold on its own, and index can also be traded as a whole.Indices are bought and sold in same way as an individual share. Indices are mostly region based and investors also use them to gauge a particular economy’s health.
Trading on Indices also allows investors to diversify their risk across the whole market instead of investing in a specific company.
Major Indices
S&P 500,
Dow Jones in USA,
FTSE100 in UK,
European indices - DAX30
Asian Indices NIkkei225, Shanghai Composite & Nifty 50