The most important information about an index, often provided alongside its current price, is the daily change (as a percentage) and the number of points that it has moved up or down since market open.
The most important information about an index, often provided alongside its current price, is the daily change
(as a percentage) and the number of points that it has moved up or down since market open.
Let’s take the DAX for example. If you think that the economic outlook for Germany is positive, you would buy
DAX CFDs in the expectation that companies in Germany would pull the price of the index up.
It is important to remember that at times indices may rise not as a result of real economic growth, but simply
due to increased risk appetite to own risky assets, like shares. These deviations, however, cannot last long and
a price correction is likely to follow soon. Traders often compare the performance of indices from different regions
in order to spot and take advantage of opportunities. Let’s find out how that works in practice by comparing DAX
and S&P500.