Indices

Indices




Trading Indices

 

Indices, more commonly known as indexes, are a group of assets for a stock market.

The index level is calculated from the current prices of all the assets within that particular index, with individual company stock prices varying, this will decide on the overall position of the index either falling or rising in it’s value each day.

Some indices are global, whilst others are national, and listing only companies which have a base to the country.

The FTSE 100 for instance is based in London however, is made up of companies who earn more of their revenue outside of the UK and in Dollars, while the FTSE 250 is more representative of companies trading within the UK.

Some multinational corporations are able to trade on more than one index; usually listed on both a national index and an international index too, one being Barclays, listed as part of the FTSE 100 and listed on the New York Stock Exchange.

Some of the “Major Indices” are

  • CAC 40 – trading in Paris
  • DAX 30 – trading in Frankfurt
  • DOW JONES – trading in New York
  • FTSE 100 – trading in London
  • NIKKEI 225 – trading in Tokyo

 

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