Indices

Indices are carefully selected groups of assets that allow investors to broadly invest into a specific economic region or industry. For example, traders can invest in the S&P 500, which are the 500 largest U.S. corporations publicly traded on the stock market, with just a single position in the market. This allows for instant diversification.

Investors also choose indices since they are already fully diversified instruments. As a result of this, there is often plenty of liquidity.

This means better pricing which results in improved profit margins. Also, you will be able to control a diversified position in the market with just a single position that you will need to manage and monitor. Indices can be used for various trading styles, ranging from short-term day trading to long-term investment holdings.