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What are Indices?
Indices are a quoted measure of the performance of a group of shares from an exchange.Register Now
What are the benefits of stock
indices and how to trade them?
By measuring the average value of an exchange’s leading stocks, an index can indicate how economic sectors are fairing. Stock indices then represent a benchmark against which a stock’s performance may be measured. The index itself, however, is not a tradeable asset. Instead, one may invest in a derivative – a fund, option or future – that tracks the index’s value. But first, one must fully understand what an index is.