
This is the coefficient of change in any economic indicators of several companies in time.
Start tradingBy purchasing stock indices, a trader diversifies his investments, as he buys stocks of various companies.
Purchase of indices will cost a trader less than the acquisition of each stock separately.
Stock indices are one of the most stable trading instruments.
To trade on the market, it is enough to study the news reports of large companies and monitor the economic situation.
There are different ways to measure the indice: there is an indice that is calculated based on the geometric average of the growth rates of stocks, and sometimes they use an arithmetic average instead of a geometric.