What are the benefits of trading Indices?

Category: indices-faq

There are many benefits of trading indices, chief among them being diversification.

Unlike trading an individual symbol like a currency pair, stock, commodity, or cryptocurrency; when you trade an index, you’re dividing your exposure among a variety of individual symbols. Secondly, indices tend to be more liquid than individual stocks. Finally, another great reason to trade indices is their usefulness as a hedging tool.