An index calculates the value of a group of stocks. There are hundreds of indices in the world, each confined to a region and typically segmented into industries. For example, we would normally think of the Dow Jones as industrial, Nasdaq as tech and FTSE as British.

If you understand a certain sector in a specific country, then you can track the relevant index and trade on price movement. If you study tech companies then Nasdaq will suit you, but if you are interested in leading US companies, then S&P 500 is your index. Use your knowledge along with the Traders Trends Bar and over 90 WebTrader edit tools to evaluate your indices trades.