On the PFD platform, you can trade a diversified portfolio with a spread of USD index as low as 0.0. Enjoy highly competitive interest rates and easily seize new market opportunities.
In trading, indices (also called stock indexes) represent a group of stocks that track the performance of a particular sector, market, or economy. Rather than buying individual stocks, investors can trade indices to gain exposure to a broader market or industry. Popular indices include the S&P 500, which tracks 500 large companies in the U.S., and the Nasdaq, which focuses on tech stocks.
Indices trading allows investors to speculate on the performance of a basket of stocks (like the S&P 500 or NASDAQ) rather than individual companies. Here’s a step-by-step breakdown:
1. What is a Stock Index?
An index tracks the average price movement of selected stocks, representing a market/sector. Examples:
S&P 500 – Top 500 U.S. companies.
NASDAQ-100 – Tech-heavy giants (Apple, Amazon).
Dow Jones (DJIA) – 30 blue-chip stocks.
FTSE 100 – Top UK-listed firms.
2. How to Trade Indices
Since you can’t buy an index directly, traders use:
A. Index Futures & Options
Trade contracts tied to the index’s future price (e.g., E-mini S&P 500 futures).
Settled in cash (no physical delivery).
B. ETFs (Exchange-Traded Funds)
Buy/shares of funds mirroring an index (e.g., SPY for S&P 500).
Trade like stocks during market hours.
C. CFDs (Contracts for Difference)
Speculate on price movements without owning the asset.
Use leverage (higher risk/reward).
D. Index Mutual Funds
Passive funds (PFD) tracking indices.
Bought/sold at end-of-day NAV (Net Asset Value).
