⚠️What is index trading?
Index trading involves trading financial instruments that represent a group of underlying stocks, such as the S&P 500 or the Dow Jones Industrial Average. Traders can speculate on the overall performance of the stock market or specific sectors through index trading. This type of trading allows investors to gain exposure to a broad market segment without having to trade individual stocks. Index trading is popular for both short-term and long-term strategies and is executed through various financial derivatives like index futures, options, and exchange-traded funds (ETFs).
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