Indices are financial instruments consisting of a group of securities and reflecting changes in their value. Since an index consists of several stocks at once, its value is calculated based on the total value of securities or capitalization of issuers. The set of stocks that make up an index determines what information about the current state of the market can be obtained when analyzing it. Through the use of Indices in investing, clients can diversify their investment portfolios and observe and analyze the condition of one or another sphere of the world economy.
Indices derivatives are highly liquid financial instruments reflecting market conditions at the moment. One of the most famous indices — Dow Jones — consists of shares of the 30 largest U.S. companies and provides an overview of the overall state of the U.S. economy.