“Nothing can stop the man with the right mental attitude from achieving his goal.” Thomas Jefferson
Indices are statistical measures of the overall changes in a group of stocks. They were first applied to stocks in the late 1800s to give investors an overall feel of general market performance and today are a crucial indicator of economic health. In the US for example, the Nasdaq, S&P 500 and the Dow Jones Industrial Average are used as benchmarks for the country’s overall economy.
The underlying asset of each of these various indices is essentially a group of different assets. Index option trading therefore provides greater diversification and stability. Learn from Banc De Binary’s analysts the story behind the most traded indices. Find out their typical responses to market news and what other assets they relate to. See what clues indices provide about the movements of currencies and stocks. Happy trading!