Index trading is the buying and selling of stock indices (e.g., the S&P 500, FTSE 100) without owning the underlying stocks, allowing you to trade a wide range of companies simultaneously. This type of trading is typically accomplished through instruments such as futures, options, ETFs, or contracts for difference (CFDs), allowing you to speculate on the rise or fall of the market or individual sectors.

How it works

Buying and selling: Traders can open long positions (buying) on ​​an expected rise in the index or short positions (selling) on ​​a fall.

Speculating on price differences: When trading CFDs, you enter into a contract with a broker for the difference in the index price from the moment you open to the moment you close the position.

Profit and loss: Profit or loss is calculated based on the index price movement multiplied by the number of units of the asset.