STOCK INDICES

A stock index is a method of measuring the value of a portfolio of shares. Stock indices reflect the changing trends in the market. Depending on the indicators you select, stock indices provide an overview of changes in specific sectors of the market (for example, if you take into account only shares of the commodity sector for the calculation of the index) or the whole market in general. As trading individual shares might be a complicated task, it is much more convenient to track the indices that reflect the general trend in the market and trade on their differences. Predicting the change in an index is much easier than predicting the course of any other financial instrument. This makes stock indices a very popular trading instrument.