The Benefits of Stocks
Clearer Trends & Higher Predictability
As opposed to currencies, indices tend to have clearer trends that can be easier to capitalize on. Seeing as the indices markets stem directly from stock prices, they tend to move in one direction (upward or downward) at any given time. This makes indices more predictable with less sudden price changes.
Indices can move 500-2000 points a day on average. This is up to 20 times more than the currency market, and can translate into large trading gains on a successful day. Also, seeing as 1 point in indices is worth $0.1 and not $10 like currencies, you can apply better risk management overall on these large moves, keeping you less exposed than you would be with other assets.
More Local & Easier to Analyze
Indices track top stocks within a single country. This makes the scope of analysis narrower than truly globalized assets like currencies and commodities, and therefore easier to analyze. For example, the FTSE 100 is an index that tracks the top 100 companies on the London Stock Exchange. A trader in this case would need to focus on those companies only, without the complex nature of currency-pairing and global asset correlation.
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