Advantages of trading indexes with UXOOL

  • Direct access to world economies
  • High profitability and direct access to equity markets
  • Trading on market trends to increase / decrease
  • Selection of a long / short position in the curve of the market conjuncture
  • Suitable for both short-term and long-term trading strategies

Stock index trading

Stock indices are one of the best trading instruments in the financial markets and the best way to diversify your risks.

The stock index – is an indicator of the status and dynamics of the securities market, which is calculated based on the rates of the most liquid stocks. Indexes of various countries reflect the state of the most developed industries and are indicators of national economies.

Features of stock index trading

Changing the index over time allows not only to analyze the general state and direction of the market, but also to make money on trends. It is impossible to trade by the index itself, transactions on direct purchase and sale, are carried out using standardized futures. When buying or selling index futures, the parties to the transaction rely on a change in the base figure. That is, a trader, opening a long or short position on these futures, conditionally buys or sells a package of shares of companies included in the index.
Stock indexes are also traded using the same name CFD, the price of which is determined by the values ​​of the corresponding indexes or futures. The main advantages of trading CFDs on indexes, is the ability to trade fractional lots and invest small capital using leverage.

Indexes are calculated based on the weighted average of stock prices belonging to a particular market category. Stock indexes can be composed of shares of companies of individual sectors of the stock market (among such indexes, for example, NASDAQ), or from shares of the largest companies in the country. Among the latter can be identified the American S & P 500, the British FTSE 100, and the Japanese Nikkei 225.

Indexes show the general direction of movement of a separate stock market or the entire economy of a country. However, since stock indexes are compiled on the basis of a basket of shares of companies, they are influenced by the prices of shares of individual companies or shares of companies from certain sectors of the stock market.

Different indexes are compiled on the basis of a basket of stocks in different ways. In other words, different methods are used in the calculation of the values ​​of the indexes. Among the two main methods of calculation are the following: calculation based on the prices of shares included in the index, and calculation based on the capitalization of companies whose shares are represented in the index.

We give examples of indexes calculated by different methods:

  1. 1.Dow Jones (US 30) и Nikkei 225 (Japan 225) - indexes calculated on the basis of stock prices.
  2. 2. FTSE 100 (UK 100), ASX 200 (Australia 200), Hang Seng Index (Hong Kong 50), DAX (Germany 30), CAC 40 (France 40) и IBEX 35 (Spain 35)- are one of the major stock indexes, calculated on the basis of the capitalization of companies.
  • Best Forex Provider of 2015 Investors Chronicle & Financial Times
  • Best FX Provider of 2016 Online Personal Wealth Awards
  • Best FX Broker of 2017 Shares Awards
  • Best forex performance of 2017 CFI

The activities of our company are subject to licenses: CySec, MiFID, Ernst & Young and Belize IFSC (license number 60/354 / TS / 17). The availability of these licenses is evidence and guarantee of the provision of high-quality services by UXOOL to its clients at the highest level of service, in accordance with the highest regulations and requirements. UXOOL Ltd is part of the international holding company Leverate Financial Services Ltd (Regulated by Cyprus Securities and Exchange Commission License no. 160/11) .

View our documents