At the point when you hear individuals discussing “the market”, they are regularly discussing Stock Indices. Regardless of whether you haven’t ever exchanged a Stock Index previously, there’s a decent possibility that you will have heard the name of a portion of the more well known US, European, and Asian Stock Indices, for example, the Dow Jones or the NASDAQ in the US, the ASX200 in Australia, the DAX 30 in Germany or the Nikkei 225 in Japan.
Discovering approaches to exchange Stock Indices with bitcoin isn’t simple. This is for the most part because of the way that in the event that you need to exchange both conventional and new advanced markets, it is costly and tedious to move all through fiat on various exchanging stages.
TradeConnect expels these obstructions to passage by interfacing crypto brokers with more than 60 diverse worldwide budgetary resources including Forex, Stock Indices, Commodities and Cryptocurrency CFDs utilizing bitcoin or ethereum as edge guarantee in a solitary, simple to-utilize exchanging system.
Exchanging Stock Indices on TradeConnect is speedy, simple and secure. TradeConnect utilizes a focal breaking point request book to guarantee all exchanges on the stage are straightforward and satisfied at the best cost, at the best time. It additionally has a $100 million dollar protection strategy to guarantee security is the most elevated need.
TradeConnect also has some of the lowest fees in the industry due to its unique ‘Connect Fee’ model and daily fee rebates of up to 75% for active Makers and Takers.
BONUS PROMOTION: New traders also get $50 USD in BTC, ETH or TCO free when they complete their first 10 trades on TradeConnect.
So let’s take a closer look at what a Stock Index is, why you would trade it and how you can trade Stock Indices using bitcoin on TradeConnect.
What is a Stock Index?
A Stock Index, also known as a Share Index or a Stock Market Index, tracks and measures baskets of related stocks from a particular country.
Stock Indices are created by combining the value of several Stocks to highlight one aggregated value that is then used to compare current market price levels with historical price levels in order to calculate the overall market performance within a specific country.
Stock Indices are powerful indicators for global and country-specific economies worldwide and are used by economists, politicians and analysts to help understand how well the financial markets, and companies within those country-specific markets, are performing.
Types of Stock Indices
Stock indices can be made up of many different factors. Some are grouped by geographical location, others industry sector or even company size. Different stock exchanges deal with different types of stocks.
For example, the NASDAQ Index only lists technology stocks. The ASX200 consists of Australia’s largest 200 companies by market capitalization. The S&P 500, in contrast, measures the stock performance of the top 500 companies in the US.
There are approximately 5000 US indexes in the US alone and the 3 most followed stock indices, by both the media and investors, are generally thought to be the S&P 500, Dow Jones Industrial Average and the NASDAQ Composite. In 2018 it was reported that there are nearly 3.3 million stock market indices around the world.
Advantages of Trading Stock Index CFDs
The advantage of trading a Stock Index over individual stocks is that firstly, they offer exposure to an entire industry rather than a single Stock; Secondly, you do not need to conduct research on every individual company report as you would if you traded a single Stock; Thirdly, the price movement of Stock Indices is generally known to be much less volatile and a smoother experience than trading individual Stocks as an individual Stock can’t cause an extreme price spike within a Stock Indice.
How to Trade Stock Indices with Bitcoin on TradeConnect?
On TradeConnect you can trade over 15 different Stock Index CFDs using bitcoin, including: Australia 200 (AUS200), BOVESPA Future (BRAZIL 60), China A50 (CHINA50), Euro Stoxx 50 (ESTX50), French CAC 40 (FRA40), German DAX 30 (GER30), Hong Kong H250 (HK50), Japan Nikkei 225 (JPN225), Nasdaq (NAS100), SPAIN 35 (SPAIN 35), US S&P 500 (SPX500), UK 100 (UK100), Dow 30 (US 30), US Dollar Index (USDINDEX), and the South Africa 40 Index (ZAR40)
To get started trading Stock Indices with bitcoin on TradeConnect all you need to do is follow these 5 simple steps:
Step 1: Download the TradeConnect app
Step 2: Select the Stock Index that you want to trade
Step 3: Deposit bitcoin into your TradeConnect wallet
Step 4: Open your trading position
Step 5: Monitor and close your trading position