Equity Indices spreads
What is Stock Index?
A good indicative measure of market performance. Indices such as the FTSE 100 and DJIA Index are baskets of blue-chip stocks listed on the exchange and are generally a good measure of the current market sentiment. A change in the performance of any constituent stock in an index is reflected in a change in the overall value of that index.
Indices have the advantage of allowing traders to take a wider view of a basket of stocks rather than taking a view on one individual stock alone.