Indexes are an indicator of development of the given market. They show us how it is developing, whether it is falling or rising. As a result it is possible to identify the current trend and development tendency, and so we do not have to go through tables containing the movements of the individual shares. Each exchange or stock market or over-the-counter market has its own index.
how it works
Indexes are divided into selective and all-share indexes . Selective indexes contain only the most important shares on the given market. All-share indexes contain all the shares on a given market.
Two main methods by which exchange markets can be calculated – price-weighted indexes and capitalization-weighted indexes.
Price-weighted Indexes – the value of the index is influenced only by the prices of the shares included in it. The higher the share prices of the individual companies, the more they influence the value of the index. The volume of traded shares is not taken into account at all.
Indexes linked to market capitalization – the value of the index is influenced both by the price and the volume of the given shares in circulation. As a result large companies traded in large volumes have the greatest impact. There are far more indexes calculated in this way.
The matter of indexes is somewhat simpler for inexperienced investors – it is a highly stable market in which it is good to diversify. So the investor need not monitor a great number of inputs on the market.
- Personal trading assistant:
The highly qualified team of NelsonFX trading assistants offers you support 24 hours a day, 5 days a week. Moreover, you have the opportunity to contact the NelsonFX assistant in your native tongue.
- Participation in the development of various financial assets:
With NelsonFX you have access to inexpensive and simple participation in the development of various financial assets.
- Long term and short term:
The advantage of investing in indexes is not only long-term investment, but also the possibility of short-term speculation.
- No fees:
NelsonFX offers you the opportunity to trade with indexes and not pay any fees.
- Possibility of simple diversification:
Thanks to investment via one asset in several companies, there is a simple diversification of risk.
Trading with indexes is simpler than buying shares. By tracking the most successful indexes you make it easier to monitor the massive share markets, and so you can concentrate only on the correct estimate of purchase and sale.
It is also a good idea to use indexes for so-called diversification, which will help you secure your investment against any drops.
*These data are only illustrative example.
|Instruments||Spreads||Leverage||Trading hours||BUY points Rollover per lot per day||SELL points Rollover per lot per day|
|DollarIndex||0.05 (USD)||1:100||Mon - Fri: 03:05 - 23:55||-1.1434||-0.4708|
|Europe50||1 (EUR)||1:50||Mon - Fri: 09:05 - 22:55||-25.675||-25.675|
|USA30||3 (USD)||1:100||Mon - Fri: 01:05 - 23:10||-232.513||-116.256|
|USTECH100||1.5 (USD)||1:100||Mon - Fri: 01:05 - 23:15||-60.321||30.16|
|USA500||1 (USD)||1:100||Mon - Fri: 01:05 - 23:15||-26.488||-13.244|
|UK100||1 (GBP)||1:50||Mon - Fri: 10:05 - 22:55||-60.342||-51.058|
|Germany30||2 (EUR)||1:50||Mon - Fri: 09:05 - 22:55||-82.165||-82.165|
|HongKong45||10 (HKD)||1:50||Mon - Fri: 04:15 - 07:00, 08:05 - 11:30, 12:20 - 18:45||-246.225||-175.875|
|Swiss20||6 (CHF)||1:50||Mon - Fri: 09:05 - 22:55||-96.969||-96.969|
|Japan225||15 (JPY)||1:50||Mon - Fri: 01:05 - 23:10||-149.252||-139.623|
|China50||30 (USD)||1:20||Mon - Fri: 04:05 - 10:50, 11:45 - 20:55||-320||-320|
|France40||2(EUR)||1:50||Mon - Friday: 9:05-22:55 GMT+2||43.937||42.496|
*Leverage is estimated and depends on the real-time value of the instrument.
**Once you open and/or close position, you will pay spread, which is the difference between current Bid and Ask price. Due to market fluctuations the spread might vary. NelsonFX.com does not receive commission, incentives, fee reductions or rebates from any clearing firm.
*** The closing time for VIX on Friday is 21:10 GMT.
With NelsonFX.com you can trade global Indices from your local desktop! From popular American Indices such as the Dow, Nasdaq and S&P, to major European Indices such as the FTSE, CAC 40, DAX 30, to far-East favorites such as the NIKKEI, Hang Seng and S&P/ASX 200! Trading hours vary from instrument to instrument; please see the above table for details.
The spreads provided are a reflection of the time-weighted average. Though NelsonFX.com attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.