Indices

Explore the Concept of

Indices

In FX trading, 'indices' refer to a specific type of financial instrument that represents a basket of stocks from a particular region, country, or sector. Unlike individual stocks, which represent ownership in a single company, indices provide a way to track the overall performance of a group of stocks.

Forex indices are commonly used as indicators of broader market trends and sentiment. They allow traders to speculate on the performance of entire economies or sectors rather than individual companies. Some well-known forex indices include the S&P 500, Dow Jones Industrial Average, FTSE 100, and DAX.

Trading Forex indices involves speculating on whether the overall value of the index will rise or fall over a certain period. This can be done through various financial instruments such as index futures, options/contracts for difference (CFDs).

*Zero Spread Indices carry a commission cost of $150 per lot