Stock Index

Stock index trading is a very popular instrument for investors globally. For those who do not want to trade the individual stocks, stock index trading is an alternative. Stock index trading has many advantages. The major indices are well followed and the markets for the stocks in the indices have high liquidity and are well regulated. Trading is almost continuous through the day, and investors can transact at almost any time.  Stock index trading allows for hedging underlying portfolios and enables speculators to short the market. It also allows investors to create an exposure to a broad range of stocks without having to invest in the individual stocks