How to Trade Indices - Binary.com Trading Video

How to Trade Indices - Binary.com Trading Video

Watch this quick tutorial video to learn the basics of index trading. Explore the simple fundamentals of indices and how to place trades in 90 seconds. The video transcript: What are Indices? Today, we’re going to explain a little about what Indices are and how they work from a trading perspective. The word “Indices” is the plural form of Index. Stock market indices measure the value of a selection of companies in the stock market. They can let investors see how a particular set of assets – based in a specific industry sector or a certain part of the world – is performing. There are lots of different types of indices, which each use different formulas to calculate the index price. Market value-weighted indices are the most common type; here, the bigger the company’s average return, the greater the influence it’ll have on the price of the index as a whole. Price-weighted indices are based on the company's share price. Companies with high share prices have a larger amount of influence on price-weighted indices. There’s a lot more to learn about Indices. So, if you’re interested, check out the Learning Center on Binary.com, where you can explore tons of educational resources. Or if you’d like to jump right in, sign up for a virtual account at Binary.com, where you can start learning how to trade for free. Hope you’ve enjoyed this short video on Indices from Binary.com. Sharp prices. Smart trading.



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