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The advantages of trading indices with Amelok

  • Direct access to the world's economies
  • High profitability and direct access to equity markets
  • Trading on market up/down trends
  • Selection of a long/short position in the curve of the market conjuncture
  • Suitable for both short and long term trading strategies.

Stock index trading

Stock indices are one of the best trading instruments in the financial markets and the best way to diversify your risks.

Stock index – This is an indicator of the status and dynamics of the securities market, which is calculated based on the rates of the most liquid stocks. Indices of various countries reflect the state of the most developed industries and are indicators of national economies.

Features of stock index trading

Changing the index over time allows not only to analyze the general state and direction of the market, but also to make money on trends. It is impossible to trade in the index itself, direct purchase and sale transactions are carried out using standardized futures. When buying or selling index futures, the parties to the transaction rely on a change in the base figure. That is, the trader, opening a long or short position on this futures, conditionally buys or sells a package of shares of companies included in the index.
Stock indexes are also traded using the CFD , whose price is determined by the values ​​of the corresponding indices or futures. The main advantages of trading CFDs on indices is the ability to trade fractional lots and invest small capital using leverage.

Indices are calculated based on the weighted average of stock prices belonging to a particular market category. Stock indices can be composed of shares of companies in individual sectors of the stock market (such as indices, for example, NASDAQ), or of shares of the largest companies in the country. Among the lattest are the American S & P 500, the British FTSE 100, and the Japanese Nikkei 225.

Indices show the general direction of movement of a separate stock market or the entire economy of a country. However, since stock indices are compiled on the basis of a basket of stocks of companies, they are subject to the influence of the stock prices of individual companies or stocks of companies from individual sectors of the stock market.

Different indices are compiled on the basis of a basket of stocks in different ways. In other words, in the calculation of the values ​​of the indices different methods are used. Among the two main calculation methods, the following can be noted: calculation based on the prices of shares included in the index, and calculation based on the capitalization of companies whose shares are represented in the index.

The most important stock indexes in the world:

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  • NASDAQ Index - gives insight into the US high-tech market situation.
  • NASDAQ Index - gives insight into the US high-tech market situation.
  • NASDAQ (National Association of Securities Dealers Automated Quotation) - one of the three main US stock exchanges (besides AMEX and NYSE). Founded in February 1971 and located in New York. To date, the NASDAQ stock exchange traded shares of more than five thousand high-tech companies. The most famous indexes here are NASDAQ 100 and NASDAQ Composite.
  • DAX Index (DAX 30) - German stock index, which includes 30 of the most important companies in the country: Adidas, BMW, Henkel, Volkswagen and others. It was introduced in 1988, and now it is the main German stock index. Share prices of thirty top companies from various sectors of the German economy are involved in its calculation.
  • FTSE Index (FOOTSIE, Footsie) - The FTSE 100 index is the most respected and quoted index on European markets. As part of which 100 largest companies, began to pay off from January 3, 1984. It takes into account the stock quotes of 100 companies with maximum capitalization and listed on the London Stock Exchange (LSE) - the largest stock exchange in Europe, which has been operating since 1801.
  • Nikkei 225 Index - Japanese index, which includes 225 companies. The composition is reviewed annually. It includes such giants as Honda, Panasonic, Mazda and others. With a probability of 99.9%, all Japanese brands that you know belong to the NIKKEI 225. Like the S & P 500, it fairly objectively reflects the state of the economy. The most important index in the Asian region.
  • CAC 40 and CAC General - These are the major stock indices of France, which includes the 40 largest companies in the country. To calculate the CAC 40, the share prices of the 40 largest issuers of France are taken into account. The CAC General calculation is based on an analysis of the stocks of 250 companies.
  • Hang Seng Index - the main (weighted by capitalization) index of Hong Kong. Calculated on the basis of share prices of 33 companies, the capitalization of which is about 70% of the Hong Kong stock exchange.
  • Index Bovespa - Brazil's stock index, which includes the most liquid stocks of Brazilian issuers listed on the Stock Exchange Sao Paulo.
  • MICEX and RTS - 2 stock indexes, which include the 50 most liquid and largest companies in Russia. The index includes such giants as Gazprom, Rosneft, Lukoil, Sberbank, Magnit, etc.