Stock indices are also a measure of the market performance and of current market sentiment in each country, making it easier for traders to understand and follow if indices respond well to economic news
Extended trading hours and the possibility of trading both long and short positions, attracts active traders, seeking high returns. Indices trading is an effective way to diversify against risks by investing on a wide-ranging basket of assets instead of a few investments. This helps traders hedge against unnecessary risk, which may be related to a specific company or industry, without, however, decreasing expected earnings.