20 years: Equity derivatives trading
Join Imran as he explains what equity indices are, the different types, why people use them, and some of the most popular products that are traded on them.
Join Imran as he explains what equity indices are, the different types, why people use them, and some of the most popular products that are traded on them.
Subscribe to watch
Access this and all of the content on our platform by signing up for a 14-day free trial.
9 mins 41 secs
An index whose value is derived from a weighted average or aggregate of a group of stock prices of different companies that represent either a particular country or a sector of the company.
Key learning objectives:
Understand the two main types of equity index.
Outline some examples of Equity Indices
Understand why people trade indices
Define ETFs, futures & options
Access this and all of the content on our platform by signing up for a 14-day free trial.
An index whose value is derived from a weighted average or aggregate of a group of stock prices of different companies that represent either a particular country or a sector of the company.
Example include:
There are also global indices such as the MSCI World Index, which is made up from a selection of stocks from all over the world.
Trading in individual companies can be challenging and dangerous for unskilled stock pickers. Trading indices allows you to have a macro view and not be exposed to stock-specific risk. Monitoring index moves every day gives you a sense of what the overall market is doing without being overly worried with individual stocks. Typically, when the economy is doing well, the large market indexes begin to grow. In periods of recession or crisis, indexes begin to fall. Sector indices are also very popular as they allow investors to get exposure to sector trends or themes, again without having to determine who the individual winners and losers will be.
Access this and all of the content on our platform by signing up for a 14-day free trial.
There are no available videos from "Imran Lakha"