What are indices?
Indices allow investors to gain an insight into the performance of an asset class or a segment of that asset class. Indices are used as the underlying for various financial instruments and to benchmark the performance of portfolios designed to replicate the performance of a given asset class.
Why trade indices?
By trading index futures, options, warrants, CFDs, and index tracking Exchange Traded Funds (ETFs) an investor could gain exposure to the performance of the index or hedge an existing portfolio.