AvaTrade AU Top Indices
Our “Top Indices to Trade” section gives you all the informations you need to start trading on the most profitable indices in the market with confidence. AvaTrade will guide you to the best index to trade with, according to your needs. Be ready to be amazed about what indices can represent in the trading online market and how many opportunities you can find. Welcome to AvaTrade
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The Nasdaq is a benchmark index for US technology stocks and a global electronic marketplace for buying and selling securities. The term Nasdaq that is also referred to the Nasdaq composite, which is an index of over 3,000 stocks that are listed on the Nasdaq exchange.
The Dow Jones Industrial Average, also called DJIA, the Dow Jones Industrial, the Industrial Average, DJI, the Dow Jones, the Dow 30 or simply the Dow was founded by Charles Dow and Eduard Jones in the mid-1880s.The index is price weighted average of 30 of the most significant stocks that are traded on the Nasdaq and New York Stock Exchange.
The DAX 30 is the benchmark Stock Market Index (known as the Deutscher Aktienindex), in German Stock Indices and overall economic performance of the country, which lends itself to investor sentiment towards German equities.
The FTSE 100 (Financial Times Stock Exchange), known better as the Footsie, is possibly the most popular and widely traded index on the stock market in the world today.It represents 80% of the market capitalization within the London Stock Exchange (LSE).
The CAC 40, managed by the Euronext exchange group the CAC it is known as the benchmark index for the Paris Stock Exchange. Aptly named, the CAC-40 (CAC quarante) is a free floating market capitalisation index, which reports the performance of 40 of the most popular traded shares listed on the Euronext Paris exchange, and the most widely used indicator of the French Stock Market.
The Nikkei (Nikkei heikin kabuki) 225 also known as the Japan 225, is the stock market index for the Tokyo Stock Exchange (TSE). The Nikkei was first calculated in the 1950 (retroactive to May 1949) and is the most widely quoted average of Japanese stocks, today it is calculated on a daily basis by the Nihon Keizai Shimbun (Nikkei) newspaper.
The China A50 is an index for 50 stocks of companies with the highest market capitalisation listed on the Shanghai and Shenzhen stock exchanges. China A50 was introduced by FTSE Russell to track the performance of A-listed company shares as well as to offer a definitive benchmark for equity investment in Mainland China.
The AEX index is currently composed of 25 of the best Dutch companies that trade on the Euronext Amsterdam (formerly known as the Amsterdam Stock Exchange)derivate, from the Amsterdam Exchange Index which is a stock market index.
The index tracks only companies whose revenues have at least 50% exposure to the cannabis industry. This has led to the Cannabis Giants Index becoming the global definitive stock market benchmark index for marijuana-exposed stocks.
The EURO STOXX 50 stock market index represents 50 of the largest blue-chip European companies actively operating within the Eurozone, by market cap. The index covers these highly liquid stocks from 11 Eurozone countries, namely Austria, Belgium, Ireland, Italy, The Netherlands, Luxemburg, Spain, Portugal, Finland. With France and Germany as their main sectors.
The FTSE MIB is the standard stock market Index for the Italian national stock exchange, known as the Borsa Italiana. The Index represents the 40 most traded stocks on the exchange made up of the leading companies across the ICB (Industry Classification Benchmark) sectors in Italy.
The Hang Seng is the most widely quoted barometer for the Chinese stock market and the Hong Kong economy. As Hong Kong’s status is known as a special administrative region of China, there are close ties between their economies and a lot of Chinese companies are listed on the Hong Kong Stock Exchange, still held in a majority by the British financial firm HSBC.
The OMXS30 is an index for 30 of the most actively traded shares on the Stockholm Stock Exchange. OMXS30 is considered Sweden’s leading benchmark stock index, with the limited number of constituents ensuring that the underlying stocks have excellent liquidity.
The Russell 2000 Index measures the performance of some 2000+ small-cap companies that are listed on the Russell 3000 Index. The Russell 2000 index was founded in 1984, and is associated with the OTC Markets Group, the Nasdaq and the NYSE. At the time of writing, there were 1983 constituent components in the Russell 2000 Index. A free float capitalisation-weighted method is used for this index.
The Standard & Poor’s 500 Index, aka S&P 500 is a reflection of the performance of the top 500 stocks of leading companies selected by economists in the USA, and is listed on the NYSE (New York Stock Exchange) and NASDAQ (Nasdaq Exchange).
As Switzerland’s most important stock index, the SMI (Swiss Market Index) features the 20 largest and most liquid blue-chip companies in Switzerland and Liechtenstein; it represents nearly 90% of the total capitalization and trading volume of the Swiss Stock Market.
The IBEX 35 stock market index represents the 35 most prominent and liquid companies on the Madrid Stock Exchange. This is Spain’s main exchange. It is calculated by the Sociedad de Bolsas, which is the company running Spain’s securities markets. The exchange is reviewed twice a year by the Technical Advisory Committee. This committee is made up of reps from the stock exchanges and derivates market, and professionals from the academic and financial fields.
The ASX 200 is an index of 200 stocks of companies with the highest market capitalization listed on the Australian Securities Exchange. Because it represents the biggest companies in the country, the ASX 200 serves as a definitive, credible barometer of Australia’s economy. It is effectively the benchmark stock market index for the Australian stock market.
The Crypto Market Index 10 is an index for the Top 10 cryptocoins or tokens in terms of market capitalisation. Since this index tracks the top blockchain projects, the Crypto Market Index 10 is widely considered the benchmark index for the cryptocurrency market. By simply tracking this index, investors can quickly get a feel of the volatility and sentiment of the overall cryptocurrency market.
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Top Indices FAQ
- How do you trade indices?
You can’t actually trade the indices in the financial markets. Instead you would have to trade an ETF that tries to match the performance of the underlying index. This is not perfect, but is close enough for most traders. A better way is to trade contracts for difference (CFDs) on your chosen index. With a CFD you are trading a derivative that is based on the actual price of the underlying index. With a CFD you do not take ownership of any asset, but simply speculate on the price action of the index.
- What are the most important global indices?
There are indices for most every countries stock market, but some have more weight in the global financial markets because of their size, or because the country is one of the global economic powerhouses. In terms of influencing investor sentiment, the most important indices are the three big U.S. indices – the Dow Jones Industrials average, the S&P 500, and the Nasdaq Composite. Outside the U.S. there are some other very important indices in terms of sentiment. These include the U.K.’s FTSE 100 and the DAX 30 in Germany. Moving to Asia investors will see the greatest impact from the Nikkei 225 in Japan and the S&P/ASX 200 in Australia.
- What is the best strategy to trade on indices?
Indices are often overlooked by traders, but they are actually an excellent trading vehicle because they tend to trend often and strongly. That makes trend following strategies very effective when trading on global indices. Moving averages can be a very effective strategy when trading indices. Simply find the trend and then wait for price to pull back to the moving average line. You can use any time frame you like, but the 25 and 50 period moving averages work well. This is a simple way to speculate on the indices, and because of their trending behaviour it works quite well.