What Is The Basics Of Indices Trading And How To Trade Indices?

Gain a comprehensive understanding of indices and how you trade indices. Discover the numerous benefits indices trading can bring.

• Question 01

  Which of the following is not an example of a stock market index?

  Your Answer

  • A.S&P 500

  • B.FTSE 100

  • C.Euro Currency Index (EURX)

  • D.Hang Seng Index

• Question 01

  The S&P 500 Information Technology Index is an example of which type of index?

  Your Answer

  • A.Stock Market Index

  • B.Sector Index

  • C.Currency Index

  • D.Commodity Index

• Question 01

  Which index is often referred to as a "fear index"?

  Your Answer

  • A.S&P 500

  • B.NASDAQ Composite

  • C.CBOE Volatility Index (VIX)

  • D.MSCI World Index

• Question 01

  What weighting methodology does the S&P 500 use?

  Your Answer

  • A.Price-weighted

  • B.Market-capitalization-weighted

  • C.Equal-weighted

  • D.Dividend-weighted

• Question 01

  What factors can move the prices of indices?

  Your Answer

  • A.Only economic data and indicators

  • B.Only company financial performance

  • C.Only investor sentiment and market psychology

  • D.Economic data, company financial performance, monetary policy, investor behavior, and geopolitical events

• Question 01

  Which factor does not influence index prices?

  Your Answer

  • A.Geopolitical events

  • B.Monetary policy and interest rates

  • C.Company stock price

  • D.Sector and industry financial performance

• Question 01

  Which index is largely made up of the euro?

  Your Answer

  • A.Nikkei 225

  • B.Hang Seng Index

  • C.U.S. Dollar Index (DXY)

  • D.MSCI World Index

• Question 01

  Which type of index represents a basket of commodities or a specific commodity market?

  Your Answer

  • A.Stock Market Index

  • B.Currency Index

  • C.Bond Market Index

  • D.Commodity Index