- An equity index is composed of various constituent stock exchange listed companies.
- Each index is based on a unique criterion and its value changes as a result of changes in the market prices of its constituent stocks.
- Indices are a good trading prospect as they minimize the distortions that are unique to a single specific stock.
- The 3 major US Equity Indices tradeable at PMEX include:-
- Dow Jones:- Composed of 30 large US companies; also known as Dow Jones Industrial Average.
- NASDAQ-100:- It includes 100 of the largest non-financial companies across the world.
- S&P-500:- This index is based on the market capitalization of 500 largest US Companies listed on the stock exchange.
- You can also trade 2 variants of Japan's Nikkei 225 which is a stock market index for the Tokyo Stock Exchange. The tradeable contracts include:-
- Japan Equity 225 / USD ($1) Futures Contract
- Japan Equity 225 / USD ($5) Futures Contract