what are indices

Indices, in the context of trading, are measures of the price performance of a group of assets, such as stocks, that represent a particular market or sector. They allow investors to track the overall performance of a market or a specific part of it. For example, the FTSE 100 tracks the 100 largest companies on the London Stock Exchange. Trading indices enables investors to gain exposure to an entire economy or sector at once, without having to open positions for each individual asset. Indices are commonly used as benchmarks to evaluate investment performance and can be traded through various financial instruments such as ETFs and CFDs