Why Trade Indices?

Trading Indices are valued by traders looking to diversify their portfolios or gain exposure in more markets.

• Question 01

  What are indices in finance?

  Your Answer

  • A.Individual stocks

  • B.Statistical measures representing specific markets or sectors

  • C.Commodities

  • D.Government bonds

• Question 01

  Can indices be directly traded?

  Your Answer

  • A.Yes

  • B.No

• Question 01

  What instruments can serve as the underlying measure for trading indices?

  Your Answer

  • A.Individual stocks

  • B.ETFs and CFDs

  • C.Bonds

  • D.Real estate

• Question 01

  How do indices trading through CFDs differ from trading individual stocks?

  Your Answer

  • A.They offer lower volatility

  • B.They cannot be traded on leverage

  • C.They provide exposure to a broader market segment

  • D.They have limited trading hours

• Question 01

  Why do traders choose indices trading?

  Your Answer

  • A.To focus on specific companies

  • B.To increase risk exposure

  • C.To diversify their portfolios

  • D.To avoid market fluctuations