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What are Indices in Forex?

Forex

What are Indices in Forex?

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Indices/ Index are standardized techniques for tracking the performance of a group of assets. An index consists of a country’s giant companies’ stocks which are being publicly listed to participate in the trade market. 

By going through an index, we can understand the economic state of a particular country. Here, we will discuss some top indices, like US30, US100/NASDAQ, S&P500, US2000, GER30, JP225, and UK100.

US30

The US Wall Street 30/DJ30 is also known as the US30 belongs to the USA stock index. Dow Jones is one of the world’s major business and financial news organizations. Its main index, the Dow Jones Industrial Average (US30), belongs to the most closely followed stock indices in the world, alongside the S&P 500 Index and the NASDAQ Composite Index, and includes prestigious companies such as Apple Inc., Microsoft, and Coca-Cola. The pair is most active from 9.30 AM local time/ 1.30 PM UTC. 

The indices prices increased by 17.73% around the year of 2021. 

NASDAQ

NASDAQ index is also known as the NAS100, a part of the USA Stock index. The NASDAQ exchange includes the world’s leading technology and biotech companies, such as Apple Inc, Alphabet (Google), Microsoft, Meta (formerly Facebook), Amazon, and Intel. At 9.30 AM local time (or NYSE OPEN)/ 1.30 PM UTC, the pair is the most active.

In 2020, index prices increased by 43.64%, and by 25.39% in 2021. [Source]

S&P 500

The S&P 500 index is a market capitalization-weighted index of 500 leading publicly traded companies in the United States, including Apple Inc., Microsoft, Amazon, Alphabet, and others. The pair is most active from 1:30 PM UTC (NYSE open). 

The indices prices increased by 21% on average over the last 5 years. [Source]

US2000

The Russell 2000, also known as US2000, is the most widely quoted index of the overall performance of small-cap to mid-cap company shares in the USA. Companies like Denali Therapeutics Inc., Dorman Products Inc., Earthstone Energy Inc., EverQuote Inc., Workiva, and many more are associated with US2000. The pair is most active from 1:30 PM UTC (NYSE open). 

The index price increased by 13.09% within the span of the year 2021. [Source]

GER40

The Deutscher Aktienindex (DAX), also known as GER40 or DAX 40, is the leading stock market index in Germany, which has a huge impact on the German economy. Bayer, BMW, Lanxess, Volkswagen Group, Airbus SE, Brenntag SE, HelloFresh SE, Linde, and many more are among the companies represented. The index is most active from 7.00 AM UTC (London open time).

The index increased by 15.79% in comparison to the beginning of the year 2021.  *******

JP225

JP225, also known as Japan’s Nikkei 225, is the leading and most traded index of Japanese stocks. The companies included are Ana Holdings, Asahi Kasei, Canon, Casio, Fujifilm Holdings, Sony, and many other companies. The pair is most active from 10.00 PM UTC (Tokyo/Asian Open). 

In 2020, indices prices increased by 16.01%, and by 4.91% in 2021. [***]

UK100

The Financial Times Stock Exchange 100 Index, also known as the FTSE100, is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest market capitalization. 3i, B & M, British American Tobacco, HSBC, Rolls Royce Holdings, and Unilever are among the companies represented. The index is most active from 7.00 AM UTC (London open time).

The indices price increased by 14.89% in 2021. [*****]

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