Indices

What is the difference between Index and Share Trading?

Share trading is when you trade the shares of a specific company. The price of the shares is determined after investment companies evaluate the value of the company using complex techniques. Once the value is calculated, they determine the price and the number of shares that will be floated.

You need to remember that while you can also trade Share CFDs, you will always be trading on specific company’s shares only, in case of share trading.

On the other hand, Index trading is the trading of a collection of many stocks that make up the index through a single instrument. The index tracks a basket of stocks that are used as indicators of an overall representation of the entire stock market (like S&P500), or they could be a specialised segment of a stock exchange like technology (NASDAQ).

What factors affect the stock market indices prices?

An index’s price can be affected by a range of factors, including:

Company financial results – A company’s profits and losses will impact the share prices which can affect an index’s price. For indices that are weighted averages, the performance of the largest components exerts more of an influence.

Political News – Elections, wars, referendums, and any major political event also affects an index’s pricing.

Company announcements – Changes to company leadership or possible mergers will likely affect share prices, which can have either a positive or negative effect on an index’s price.

Changes to an index’s composition – Weighted indices can see their prices shift when companies are added or removed, as traders adjust their positions to account for the new composition.

Commodity prices – Any movement in the prices of commodities can also impact an index’s price. For example, 15% of the shares listed on the FTSE 100 are commodity stocks, which means any fluctuations in the commodity market could affect the index’s price.

Investor sentiments, central bank announcements, payroll reports or other economic events can also cause an index’s price to move.

wwwstartraddev

Share
Published by
wwwstartraddev

Recent Posts

New Middle East Stock Product Launch

Dear Valued Client, We are pleased to announce that STARTRADER will be launching new Middle East…

3 days ago

Important Notice: Historical Data Compression for Cent Accounts on Live 1 and Live 2 Server

Dear Valued Clients, To enhance your trading experience, we will be performing a historical data…

4 days ago

Important Notice: Upcoming Server Upgrade for STARTRADER

Dear Valued Client, We are pleased to inform you that STARTRADER will be upgrading its…

5 days ago

3月のロールオーバー通知

お客様各位 以下の CFD銘柄は、下記の日程に従い自動的にロールオーバーされますので、ご案内申し上げます。旧先物契約と新先物契約の間には価格差が生じる可能性がありますので、お客様にはポジションを注意深く監視し、適切に管理されることを推奨いたします。 満期日: 銘柄 銘柄名 日付 JPN225ft Japan 225 Index Future 2025-03-12 VIX Volatility…

5 days ago

米国夏時間変更に伴う取引時間の調整について

お客様各位 2025年3月9日の米国夏時間の変更に伴い、以下の商品の取引時間が調整されますので、ご案内申し上げます。 対象商品の取引時間については、以下の表をご確認ください。 シンボル 取引時間 Cocoa 月曜~金曜: 12:45-20:30 Coffee 月曜~金曜: 12:15-20:30 Sugar 月曜~金曜: 11:30-20:00 Gasoil…

1 week ago

マイアカウントアップグレードのお知らせ

STARTRADER マイアカウントのシステムアップグレードが、2025年03月8日午前 3時 (プラットフォーム時間、GMT+2) から開始し、同日中に完了する事をお知らせいたします。 このメンテナンス期間中は、弊社のウェブサイトとアプリのMyAccountセクションへのアクセスは一時的に利用できませんので、ご了承ください。 システムアップグレード後は、より充実した取引体験をお楽しみいただけます。 この改善プロセス中におけるお客様のご理解とご支援に深く感謝し、今後の取引が成功して楽しいものになることをお祈り申し上げます。 よろしくお願い致します。

1 week ago