What is Index / Indices?
A market index measures the combined performance of a defined group of stocks, such as the FTSE 100 (the 100 largest UK-listed companies) or the S&P 500.
In-Depth Explanation
Practical Example
"A trader goes long on the FTSE 100 index via a CFD, profiting when the constituent companies's share prices rise."
Related Terminology
Stock / Share
A unit of ownership in a company, entitling the holder to a proportional share of its profits and assets.
CFD (Contract for Difference)
A CFD lets you speculate on price movements without owning the underlying asset, using leverage — making it the primary instrument for UK retail traders.
Bull Market
A market condition where prices are rising or expected to rise.
Bear Market
A market condition where prices are falling or expected to fall.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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