What are indices and how do you trade them?

In principle, Indices measure the performance of a group of shares from an exchange. This could be the FTSE 100 which tracks the 100 largest companies on the London stock exchange for example.  Trading indices allows you to exposure to a complete economy or sector in once with the opening of one single trade/position. Globally, there are many famous stock indexes but also less famous ones from emerging markets which can be traded here at LBC. The most famous ones of which you might have heard are the previously mentioned FTSE100, NASDAX, the DAX and the S&P500.

The basics of trading indices

The basics of trading is related to one simple concept.  Buy low and sell high. A simple example of this theory could be the following: You purchased 10 units of the S&P at USD 4226.44 by applying leverage via LBC.  One week later, due to some very positive news in the financial markets, the S&P rose to 4875.26. This would mean you earned 10 times USD 648.82 which makes USD 6488.2 of pure profit.

Why would you want to expand your portfolio by trading indices?

Due to the fact that indexes are based on the performance of many companies, they are less volatile in general so typically, indices could be interesting if you are looking to open a position for 2 weeks, a month or even longer.
 If you would be eager to check out our complete assert index or interested in trading the global indices, please don’t hesitate to contact us or check our website.

Trading Indices while applying leverage

As indices are considered less volatile, applying leverages might be suitable. LBC offers a maximum leverage of 200 x ensuring you can enjoy a greater market exposure. It can allow you to achieve significant profits with a considerably lower investment. We invite you to check our learning center in order to obtain more knowledge about applying leverage in general and indices allowing you to exploit the benefits.

How do you start trading at LBC?

Novice investor?

Discover what LBC can offer you! We have completely designed educational packages for beginning traders!

  • 1 Open your brand new trading account
  • 2 Fund your account
  • 3 Receive access to your training package and start learning

Experienced trader?

All it will take is the opening and funding of your account.
Once done.

  • 1 Fund your account
  • 2 Begin trading
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