Discover and trade global indices with Amega!

Stocks refer to individual companies, while indices represent a group of companies under a common “theme.” For example, the Nasdaq Composite index is made up of all technological companies traded on the Nasdaq Stock Exchange.

In most cases, trading indices is less risky than trading individual stocks, as indices are not susceptible to sudden, significant changes in their daily value (for example, unlike individual stocks, it is highly unlikely that an index will rise or fall by 10% in one day)

The price of an index is directly impacted by the performance of all the companies within it. An index which includes stocks of one or more companies thriving at the same time is likely to increase in value, while the opposite means that it would decrease in value.

When trading indices, you are not only trading a specific stock, but an entire group of stocks, which means you can make a profit from the changes in their combined value, rather than an individual value.

Here are three examples:
The Dow Jones (30 most traded industrial companies)
The NASDAQ (all the technological companies traded on the Nasdaq stock exchange)
The S&P 500 (500 large-cap companies in the USA)