What is a stock market index?

A stock market index is a measurement of a portion of the stock market. It is computed from the prices of selected stocks, typically a weighted average. It is used to give an indication of the market's overall direction.

What are the most popular stock market indices to trade?

The most popular indices to trade are often those representing large portions of the global stock market, such as the S&P 500, Dow Jones Industrial Average (DJIA), NASDAQ Composite, FTSE 100, Nikkei 225, and the DAX.

What is the difference between trading individual stocks and trading indices?

Trading individual stocks involves buying and selling shares in specific companies, while trading indices involves trading a basket of stocks, providing a broader exposure to a particular market.

What factors influence the movement of stock market indices?

Movements in stock market indices are influenced by factors such as economic indicators, interest rates, political events, and company earnings reports.