What Are Indices?

Stock index CFDs are financial instruments that represent the value of the underlying publicly-traded companies. One leading index is the S&P 500, which reflects the collective value of top companies trading on the NYSE. If the overall value of those companies’ shares rises, the price of the S&P 500 will go up.

There are also indices that represent smaller companies trading on the NYSE, as well as indices for various stock exchanges around the world, from Japan’s NIKKEI to Germany’s DAX.