Index trading is a popular, easy way to invest in a group of businesses, or a representative sample of a country’s largest companies, without being forced to invest in individual companies.
For forex traders, index trading is an attractive alternative to directly investing in a specific country’s stock market. Typically, indices are designed to offer a reflection of a given country’s economic strength. But these indices can also serve as a high-performing collection of select holdings from a single market, offering a more concentrated investment opportunity in a foreign country’s economy.
Contract-for-difference (CFD) trading is popular for index investments. Of the various indices available around the world, the US30 is one of the best-known options available to traders, offering an easy way to get exposure to 30 of the United States’ largest companies.