What is Stock indices and Why to Trade Stock Indices?

What is Stock indices and Why to Trade Stock Indices?There are hundreds of stock indices across the world among the major stock indexes are DJIA, S&P 500, Nasdaq 100, DAX 30, FTSE 100, NIFTY.In this article, we’ll see what are stock indices and how they work and how they are calculated.What are stock Indices?When you see a broad-eyed television host, the industry has reached all-time highs! They apply to an index. The S&P 500 and the DJIA (Dow Jones Industrial Average) are the key stock indexes in the US and the FTSE 100 in the United Kingdom.In a market, a stock market index is a section of stocks. Traders and analysts use it to measure returns on various assets, to track the overall economy, or as an investment vehicle. Global indicators are among the most common index types.Indices reflect the value of the basket of underlying companies. The stock market index trails the group of stocks to gauge the market’s overall working.Why Trade Stock Indices?Stock indices are traded with massive volume and very famous among investors. Indices are perfect for beginners as well as for the masters. Indices trading is great for market players who are interested in day trading.Advantages of Indices trading:Indices have much more liquidity, due to which investors get clear chart patterns and tight spreads.They are highly volatile. Indices reflect the condition of the underlying economy, indexes volatility changes if there is any movement in the economy, which can generate trading opportunities.Indices offer to bet on the price of upward and downward price of the index. This can give traders more trading opportunities.There are different indexes for different sectors and industries. If investors prefer to gain in the technology sector, then they can trade US Tech 100.How are stock indices calculated?It is essential for the stock market…