If you're asking "what is indices in trading," here's a clear answer: an index (plural: indices) is a statistical measure that tracks the performance...

If you're asking "what is indices in trading," here's a clear answer: an index (plural: indices) is a statistical measure that tracks the performance of a group of assets, most commonly stocks from a particular market, sector, or theme. Famous examples include the S&P 500, Nasdaq 100, Dow Jones, FTSE 100, and DAX. Traders don't buy an index directly; instead, they access index exposure through ETFs and index funds, or via derivatives like futures, options, and CFDs. Indices help you take a view on a whole market rather than picking individual stocks, offering diversification, transparent benchmarks, and typically lower single-stock risk. Most indices are market-cap weighted, while some are price-weighted or equal-weighted, which affects how movements are calculated. Prices move with earnings, interest rates, economic data, and sentiment. Whether you aim to hedge, invest long term, or trade short-term moves, understanding indices gives you a powerful, big-picture tool for market analysis and decision-making.

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