Advantages of Equity Indices Trading with Blade FX
Cost-effective and direct access to the global equity markets
Instant access to global economies
Speculation on market uptrends/ downtrends
Going short/long according to market moves
Portfolio diversification
NO extra fees apply
About Equity Indices Trading
The purpose of the indices is to show the general direction of a specific stock market or of the general economy of a nation. However, since stock indices are composed of a basket of companies they can be very much affected by a big move of a specific company or by a big move of a specific sector of trade.
The actual weight given to a stock index from the underlying basket of stocks varies amongst the various indices, which means that not all use the same criteria to derive the end result. The two main ways to calculate the actual weight a specific underlying stock produces to the index itself is price weighting and capitalization weighting.
Below you can see the category which some of the very popular indices belong to:
- 1. Dow Jones (US30) and Nikkei 225 (Japan225) are price weighted indices.
- 2. FTSE 100 (UK 100), ASX200 (Australia 200), Hang Seng Index (Hong Kong 50, DAX (Germany 30), CAC 40 (France 40) and IBEX35 (Spain 35) are some of the main stock indices which are capitalization weighted.
Equity Indices – Who is Who?
S&P 500 (US500):
The S&P500 (US500) stock market index was introduced by the American financial services company Standard & Poor’s Financial Services LLC in 1957. It is a leading indicator of US equities, and as one of the most frequently used benchmarks for the US stock market on the whole, it covers about 75% of the American equity market by capitalization.
ASX200 (Australia200):
The ASX 200 (AUS200) index is a market-capitalization weighted stock market index of stocks listed on the Australian Securities Exchange, which belongs to the world’s top 15 exchange groups with an average daily turnover of $4.685 billion. The index exclusively includes stocks listed on the Australian Stock Exchange.
Nikkei 225 (JP225):
The Nikkei 225 (JP225), commonly known as Nikkei, is a stock index of the Tokyo Stock Exchange, the world’s third largest stock exchange with a market capitalization of US$4.09 trillion.
GerMid50Cash:
The GerMid50Cash (calculated by Borse Frankfurt) captures the performance of the 50 largest companies by market capitalization below the DAX stocks.
GerTech30Cash:
The GerTech30Cash Index (calculated by Borse Frankfurt) captures the performance of the 30 technology companies in the Prime Standard segment that rank directly below the DAX shares in terms of size (market capitalisation and trading volume).
TaiwanCash:
The TaiwanCash Index captures the performance of Taiwan large and mid-capitalization stocks with extensive exposure within the Information Technology, Financials and Industrials industries.
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