A stock index (or plural indices) is a barometer of the overall performance of the stock markets. Roughly speaking, an index helps traders understand the way the market is moving — and make predictions for the future.

You can use a CFD (Contract for Difference) to make speculations on stock indices. In taking a CFD position, a trader is essentially agreeing to exchange the difference in the price of an index from one time period to another. Trading index CFDs is extremely popular. They’re available for all the key indices around the world, which enables traders to participate in world markets no matter where they are located themselves.