The Dow Jones index included the 12 largest companies in the United States, and today the Dow Jones Index (DJI) contains the 30 largest and most influential companies in the United States.Įvery stock exchange in the world and each country has a benchmark stock index, and some have several indices. The FTSE100 index represents 100 companies listed on the London Stock Exchange with the highest market capitalization, while the S&P500 represents a broad range of 500 US companies.Ĭharles Dow created the first stock index in May 1896. The stock index itself represents the value of a group of stocks from one country, and shows the overall, current, and historic performance of that particular stock index. In fact, stock index CFDs can not only be analyzed, but they can also be bought and sold in a similar way to how stocks are traded. Most traders know the names and abbreviations of the main global stock indices, but perhaps not everyone is aware that these they can also be traded via CFDs. Best Platform for Index Trading Index Trading: An Introduction.Trading Indices: Strategies and Time Frames.Benefits of Trading Stock Market Indices.Index Trading: How to Calculate Stock Indices.
