With Toroinvest, you can trade CFDs of different financial instruments like Indices, forex, commodities, stocks, and cryptocurrencies. Enjoy an impeccable service thanks to our dedicated support team, eager to answer all of your questions. With Toroinvest and its perfectly optimized mobile-friendly version, you can make instant trades no matter where you are and help yourself with some of the most elaborate research tools, like the Autochartist and many more.

What exactly are the indices?

Think of the indices as a group of shares. Every index stands for the value of a certain market sector, like the technological industry, for example.

Each index represents the overall shifts in the values of assets that are listed on a certain market. To make this possible, every index is based on a particular metric using a standardized methodology. Each security has a different weight in the portfolio that it represents, based on its importance and influence on the market.

The purpose of every index is to indicate the wholesome performance of a particular market. You cannot trade Indices on an exchange, so one of the options of investing is through CFDs.
What are the different types of indices?

You can find hundreds of indices globally tracking any market activity – from property to bonds. All in all, they are put together by their activity or due to their geographical positioning. One can infer that the most popular stock market indices are made out of the biggest and best-performing companies. Some indices, however, track the behavior of smaller-company groups as well.

Indices can also be grouped in relation to how their parts are being weighted. The most frequent component is market capitalization. But when we talk about stocks, every company uses the whole value of its share. This kind of weighting’s advantage is that bigger companies are more influential. However, sometimes just one sector or a company can prevail and dominate almost the whole index.

Check out a list of some of the most popular indices and what they measure:

S&P 500 or simply S&P basically represents the stock performance of the 500 largest companies in the United States. Its weight type is by capitalization, and this is the reason why the first 10 companies cover 26% of its market capitalization.

Dow Jones Industrial Average or simply Dow is related to the performance of 30 big companies in America, but its weight type is not by market capitalization.

NASDAQ consists mostly of around 3300 different tech and internet stocks.

Russel 3000 is measuring the performance of the 3000 largest companies in the US by market capitalization, representing 98% of all American incorporated equity securities.

FTSE or simply the Footsie follows the 100 companies on the London Stock Exchange with the biggest market cap.

Are you ready to start trading CFDs of indices with Toroinvest?

Toroinvest is your trading partner, at your disposal 24/5, anywhere. Our multiple innovative features are here to help you improve your trading skills and knowledge. You can start with a training session with a Customer Support Team to grasp the fundamentals of dealing with our platform and the helpful research tools we offer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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