Product: Stock Index / Stock
The index is often mentioned by the news media and can be used to measure the overall market for a particular market. For the purpose of trading stocks, investors want to gain returns through index trading and increase the diversity of portfolios. When you trade the index, you are also a trader that contains a portfolio of multiple industries. For example, the stocks of 30 listed companies constitute the German DAX Index, which includes automakers German Volkswagen, sporting goods adidas, Lufthansa German Airlines, Bayer Germany, and Allianz operating the insurance and financial industry.
In recent years, stock CFD trading has become more and more popular.
When you trade a CFD, you are not buying the stock itself but a contract. You have reached an agreement with the broker to finalize the difference between the bid and the offer. That is, when you trade CFDs with EncoreFX , you get a flexibility that is not normally available under the stock market rules.