Global indices at your fingertips

What affects index prices?

Price-weighted indices, such as Dow Jones, are weighted based on the price of the different stocks contained within it, and will heavily reflect major price movements of those stocks. Capitalization-weighted indices, such as the NASDAQ composite index, are weighted based on the size of each component-company, and tend to reflect overall market performance. Other factors such as the types of companies within the index and region the index covers will also affect performance.

How to choose the right index.

Trading CFDs on indices allows you to trade the value of the underlying index. When choosing an index to trade, it’s important that you’re comfortable understanding the factors that affect its price movements. Keeping up to date with relevant market news and doing your research can help you spot trading opportunities and detect trends within your market.