Are there more risks with indices?
- Thread starter MarkDawn
- Start date
According to me, indices are the most safest options to trade as it reflects performance of the whole market. The reason for this is that indices consist of different stocks and similar trends across different sectors of all the stocks in the same time is not possible. Trading on a stock is more riskier as its of the specific entity, if anything happens to the entity a particular stock will affect. But this is not in the case of indices. It’s important to have fair knowledge of how the economy of a nation depends as indices somehow represent the economical health of a nation.
I completely agree with you. Investments are very risky no matter what type they are. Working on your risk management along with money management is very important for every trader.
Because it’s probably not possible for all 3000 odd stocks to fall out of buyers altogether right?! Has it ever happened?
Is it? I actually thought that gaps were less prominent in forex compared to indices. Am I wrong?
What I don’t get is how with economies falling to the ground post pandemic, share markets across have been performing well. There seems to be no direct correlation between the two.
Aaarrgghhh! The pulse of what I feel and think :/
Indices are very liquid to trade and their market is highly liquid too. There is a high possibility of exposing yourself to potential opportunities and markets. It is good that you want to trade indices, good luck to you.