Indices (also known as stock indexes) represent the value of a group of assets or stocks listed on a particular exchange. Major financial indices include the Dow Jones Industrial Average, ASX 200, Hang Seng, China A 50 and Straits Times Index. Different indices (or indexes) have their own criteria for determining constituent stocks.
The Dow Jones Index represents 30 large public-listed companies traded on the New York Stock Exchange weighted by price, whereas the FTSE 100 represents 100 of the largest blue-chip companies in the UK weighted by market capitalisation.
At OANDA, we offer CFDs on most major global indices, including the AUS 200, HK 50, CHINA 50 and SING 30. When the price of stocks listed on an index rise, the price of the index goes up. When the prices of stocks listed on an index go down, the value of the index falls along with it.