Indices are a measurement of the performance of a group of shares that are listed on an exchange. Because there is no underlying physical asset to exchange when trading indices, most indices trading is done with financial derivatives like CFDs.

Indices price movements and volatility are impacted by factors like political events, major factors which affect companies in a particular sector, economic data like employment figures and big changes in the currencies markets. Global Indices markets are dominated by what are sometimes referred to as “benchmark Indices,” these are the stock Indices which have an outsize impact on economies and are generally held as reliable indicators of the economic health of a particular country or area.