What is an index fund?
A stock index is a benchmark, which measures the performance of several stocks. For example, the well-known S&P 500 includes the 500 largest companies listed on stock exchanges in the United States.
How do I invest in index funds?
Select the index fund or funds you want to trade. If you are a newbie, it’s better to choose well-known and broad market indices at first. Take into consideration an index sector (for example, Nasdaq 100 is a technological index) and its geography (Nikkei 225 - the leading index of Japanese stocks).
Are index funds safer than individual stocks?
A stock index is an already well-diversified portfolio. Diversification is one of the main pillars of trading stocks. It simply means having a range of various assets to minimize the risks of unexpected price movements of one asset. Therefore, indices are more sustained to unexpected market shocks than individual stocks and thus considered as low-risk investments.
How to start trading?
If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
IBEX 35 Index
IBEX 35 Index
What is the IBEX 35 index?
The IBEX 35 index is a domestic and international benchmark for Bolsa de Madrid, Spain's main stock exchange. As you probably guessed, the index consists of the 35 largest and most liquid stocks traded on the Spanish stock market. IBE stands for Índice Bursátil Español, which translates to Spanish Exchange Index. Check out the Spain35 chart!
How does IBEX 35 work?
The IBEX 35 is based on free-float market capitalizations. A company’s free float is the number of outstanding shares which are not held by related parties. It means that the index level is the total free-float market cap of all 35 companies divided by the same value for a base period and then multiplied by the index level for that base period. The index is reviewed twice each year: in June and December. Unlike US broad-market indices such as S&P 500 or Nasdaq 100, the primary criteria for inclusion in IBEX 35 is liquidity, rather than market value.
How to trade ES35 with FBS?
You can trade contracts for difference on the IBEX 35. These contracts reflect the ES35 movement. It allows you to trade in both directions. In other words, you can open both buy and sell orders while trading.
Also, you can use leverage. It means that with only a small amount of deposit you can control much bigger financial positions. Always remember that leverage allows you to multiply your account. On the downside, you may lose a considerable part of it if the market goes against your trades.
If you want to get more tips on how to trade indices, read our special guide.
What drives the Spain35 price?
Like any other stock index, the Spain35 is driven by earnings reports, news, and new product launches of listed companies. Besides, the Spanish economic factors such as interest rates, monetary policy, and economic indicators can impact the index as they may change the consumer appetite for products and the overall market sentiment.
FBS offers many other indices for trading. Check best indexes to invest in now!
2022-01-26 • Updated