Trading Indices

Trading entire stock markets is one of the best ways to ride the big financial trends of the day. For example, if you think that things are looking up in America, you could do a "buy" trade on the Dow Jones index.

Or if you believe that Japan is in for more hardship, you could do a "sell" trade on its Nikkei index. With a spread bet, you can easily take positions like these and many more from one single account.

Buying and selling different markets around the world can also give you exposure to specific themes. For example, mining shares make up quite a bit weighting of the UK and Australian stock markets.

So, if you had a particular view about miners, targeting these countries' main indices could make sense. Likewise, manufacturing firms play a big part in Germany's DAX index, enabling you to speculate on industrial trends - see chart.

Trading On Tradefair Spreads

On the Tradefair Spreads website, you can trade an impressive range of stock markets from across the world. As well as the main benchmarks in the UK, America and Europe, you can speculate on the top indices in Japan, South Africa, Australia and India. And you don't have to worry about exchange rates either, as all your positions and profits will be quoted in your chosen currency.

Indices as an Indicator

Even if it is individual shares that interest you most, you should still pay attention to the major indices. So, you might think a particular UK share looks attractive, but if the FTSE is going the other way, you may be better off sitting tight. The same goes for the main markets internationally. What happens in America's main indices - the Dow, the S&P and the Nasdaq - can have a huge impact on markets in the rest of the world.

A great source for all the hottest news affecting the top indices can be found at www.ft.com/markets.

The information in this article is for educational purposes only, it does not constitute advice and should not be construed as solicitations of any order to buy or sell. Past results are not necessarily indicative of future results.