What are Indices & How to Trade Them?

Which markets to trade?  We talk about Indices now http://www.contracts-for-difference.c...  - what are indices?  PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE!  How to trade Indices? An index is a basket of stocks from a particular country.  We have a group of stocks that are weighted depending on the index; some indices have a weighting by market cap so the bigger the market capitalisation of a company the more they will move the index when its stock prices moves.  If you have 100 stocks in an index and you have one particular stock in that index that has a 10% weighting this will cause the index to move more.  

Index examples include
USA - Market we have the Dow 30 (made of 30 stocks) - very tight spreads
Germany - DAX 30 - this is an absolute beast to trade - at times it can swing wildly.  I love the DAX as it can give you those regular runs..
France we have the CAC 40
UK we have the FTSE 100

If you're trading an index, make sure you understand the overall mix making the index; is it mainly financials, mining, retail,  telecom - what is the overall mix?

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