Indices Trading Online
Indices are the weighted index of the top shares on a particular exchange, like the FTSE 100, US30 (Dow Jones 30), and the New York Stock Exchange. It is a portfolio of stocks put together that represents a particular market or market sector.
Trading on an index involves making trading decisions based on all the value of a portfolio of stocks from a group of industries or companies, rather than individual stocks from a single company. Our indices trading strategies online are based on putting the following into consideration;
Indices Trading News & Tips
- We carry out a proper study of the index’s component parts; which sector it belongs to and whether it comprises of shares from a group of companies. With this, we can analyze and forecast how the value of the index may behave.
- For example, companies that have the highest market capitalization in the UK are the ones listed on the FTSE 100 index and they form over 80% of the London Stock Exchange. It is important to note as well that over 10% of the company’s shares listed on FTSE 100 are from the energy and mining sector. Any change in the price of commodities in these sectors will lead to a rise or fall in the value of the index.
- We also take cognizance of the correlations between commodities and a country’s domestic index. For example, if the prices of oil fall, it will affect the Canadian economy while it will be an advantage for countries who are major importers of oil. Knowing all these are some of the factors that inform our decision to either buy or sell indices.
- Another important thing to note in indices trading is the relationship between indices and currencies. There is a direct correlation between the domestic indices of a country and its currency. For example, an increase in demand for the U.S. Dollars will result in an increase in the value of American indices and vice-versa.
- Another factor is the market capitalization of the indices. If investors are buying a particular share than selling, the value of such share will increase due to high demand.
Signals on Indices Trading Online
At Nys Trading all the above-listed factors and conditions are some of the basis with which we decide to buy or sell particular indices and then send the indices trading signals to our subscribers.
Like all other major pairs indices trading signals online also involves finding the right entry and putting your stops accordingly. We encourage our subscribers to find good indices trading brokers that have very tight spreads for indices listed on their platforms.
We send the entry price, stop loss, and take profit to be manually inputted by our subscribers. We also send them trade commentary on reasons why we are taking the trade. Fundamental indices trading strategies news and tips may be the reason why we may decide to buy or sell particular indices.
Updates on Indices Trading
If there is an update on open trades, we will also notify our subscribers.