The stock index is a statistical indicator of changes in the market value of a particular stock or
group of stocks. Stock Index is a singular form of the phrase where Stock Indexes and Stock
Indices both refer to the plural form of the phrase.
The most popular type of Contracts For Difference (CFD) is stock indices.
Capital Zone FX allows you to choose from a wide range of stock indices such as the Australian
S&P Index, UK FTSE 100 Index, USA E-mini S&P 500 and USA DJIA Index.
A market index measures the value of a holding portfolio with certain market characteristics.
Each index has its own methodology calculated and maintained by the index provider. Various
investors use market indices to track financial markets and manage their investment portfolios.
Indices such as the FTSE 100 and DJIA Index are listed on the stock market as blue chip stocks.
Blue chip stocks are stocks of well-known and high-quality companies that are leaders in their
industry. Hence, they are considered a good measure of current market sentiment.
A change in the performance of any constituent share in an index is reflected in a change in the
overall value of that index. Also, traders can focus on a basket of stocks instead of a single stock
by making their evaluations due to the indices.