Trade Indices with BitInvest
The value of an index is usually described in terms of a number of points. Each index is calculated in a slightly different way, but its value generally represents a weighted average of the current values of its component stocks. This means that the changing value of an index from one day to the next reflects the fluctuating values of the individual stocks that it is made up of, and is why an index can be a good representation of the state of a country’s economy or of a specific industry.
To trade indices, traders can go long on a particular index if they believe that stocks in that market are likely to increase overall in the future, or go short on an index if they predict that the index is likely to drop in value.