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Market Indices

Understanding Market Indices

Learn how to track and trade major market indices to gain exposure to entire market segments.

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Learn Indices

Market Indices Overview

What are Indices?

Market indices measure the performance of a group of stocks representing a particular market or sector. They provide a snapshot of market health.

Major Global Indices

Key indices include S&P 500 (US), NASDAQ (US tech), FTSE 100 (UK), DAX (Germany), Nikkei 225 (Japan), and Hang Seng (Hong Kong).

Index Calculation

Indices are calculated using different methodologies like price-weighted (DJIA), market-cap weighted (S&P 500), or equal-weighted approaches.
Index Terms

Essential Index Trading Terms

Bull & Bear Markets

A bull market refers to sustained rising prices in indices. A bear market describes prolonged declining prices, typically a 20%+ drop from highs.
Bull Market Bear Market

Index Funds & ETFs

Index funds and ETFs allow investors to gain exposure to entire indices without buying all constituent stocks individually.
Index Funds ETFs

Sector Rotation

The movement of investment capital from one industry sector to another as investors anticipate the next stage of the economic cycle.
Cyclical Defensive

Volatility Index (VIX)

The VIX measures market expectation of near-term volatility conveyed by S&P 500 index options. Often called the "fear gauge."
High VIX Low VIX