What Are Stock Indices?
A stock index measures the combined performance of a basket of shares. The S&P 500 tracks 500 large US companies, the Nasdaq 100 is weighted toward technology, and Europe’s DAX and FTSE 100 represent Germany and the UK respectively. Trading an index gives you broad market exposure without picking individual stocks.
- S&P 500 (US500): the benchmark for US large-cap equities
- Nasdaq 100 (US100): technology-heavy and higher beta
- DAX, FTSE 100, Nikkei 225: key European and Asian benchmarks
What Moves Index Prices
Indices respond to interest-rate expectations, corporate earnings, economic growth data and overall risk sentiment. Central-bank decisions and major US releases can drive large moves, so the economic calendar is essential reading for index traders.
How to Trade Indices
Indices trend cleanly and respect intraday reference levels, which makes trend-following and VWAP-based mean reversion popular. The New York session is prime time for US indices thanks to peak liquidity around the cash open.
Compare index-friendly setups across all strategies, and anchor every trade in solid risk management.
Find your index setup
Filter strategies by market and style to match index conditions.