Index is a way to track the standardized performance of a group of assets. Generally, indices measure the performance of securities which is likely to recreate a certain area of the market. Therefore, it’s a bit difficult to capture broad markets like Standard & Poors 500 (S&P 500) or Dow Jones Industrial Average (DJIA). Indices are created with a hypothetical portfolio of securities representing a particular segment or a particular market.
Indices are used to measure the other economic or financial data like, inflation, production output and interest rates. If you join with Loyal EFX, you can trade using numerous global indices.