An index has a close relationship with stocks. That is to say that an index stock equates to the aggregate number of publicly traded companies in a region or a specific exchange. Due to the uniqueness of stock indices according to their regions affects their value by the region’s economy and overall economic health.
The fluctuations experienced by stock indices create the opportunity for Index trading. An index trader must observe and understand variables that affect the value of stock indices. Some of the factors include the strength of the currency, political leadership, the strength of a country’s economy and the performance of the publicly listed company.
Index Trading and the PrimeXBT iOS App
Stock indices give the trader access to a broader market as opposed to investing in an individual stock. This calls for one to gain exposure to all markets. This information can sometimes be hard to find or to understand. PrimeXBT provides you with a platform that exposes you to the world’s most popular indices via different contracts.
All you have to do is sign up to PrimeXBT. The registration takes under a minute. With one account, you can deposit funds to your wallet at zero costs. The account allows you to trade in crypto and assets as well as index trading. The iOS application is easy to navigate by swiping. Also, the touch function is seamless and allows you to navigate successfully through the account dashboard.
The trading tools and strategies on PrimeXBT are important in making successful index trading choices. PrimeXBT has both cold and hot wallets to suit your needs and to securely store your assets. In addition to that, this iOS has both a face and touch ID to secure your assets and funds for and from index trading.
Popular Indices
The most popular indices are the Standard & Poor’s 500 indexes. This index has 500 of the largest United States-based stocks. Due to its composition, it is used to gauge the health of the United States economy. The S&P 500 has companies such as Apple, Amazon, and many more.
There are other popular indices for index traders. These include the following:
NASDAQ 100 comprises companies that have invested in biotechnology and hospital services.
DAX (GER30) which is based in Germany. The 30 biggest companies in Germany – Frankfurt Stock Exchange.
Hang Seng comprises companies falling under the Hong Kong Stock Exchange. It was established as a bank subsidiary in 1969.
Japan NIKKEI is based in Japan. It comprises 225 top companies in Japan that are publicly listed and traded.
FTSE 100 is a United Kingdom based stock index. The stock index brings together the United Kingdom’s top 100 companies that are publicly listed. This index is popular across Europe. These companies are all listed in the London stock exchange and include AstraZeneca, Barclays and many more.
ASX 200 is for companies that are trading and are listed under the Australian Securities Exchange. It has similarities with the S&P 500 of the United States.
Investing In Indices
Unlike other types of trading and investments, investing in stock indices requires adherence to red tapes. It is a type of investment that is not flexible and is strictly regulated. These regulations, formal rules, or standards must be strictly complied with by the stock indices and the index traders.
The red tape can sometimes act like a barrier to investing in index trading. At the same time, it could protect the investors and traders against poor practices that could lead to unfair exploitation.
Also, index trading requires large deposits. It is slightly financially demanding as compared to the other types of trade. However, on PrimeXTB, you can start trading stock indices with as low as 0.001BTC
Luckily, PrimeXBT presents investors with the opportunity to explore major stock indices across the globe. PrimeXBT does this through Contract For Differences. Therefore, you should consider creating your account with PrimeXBT for index trading.
