Investing in index funds is the most popular way to start trading indices. These financial instruments allow traders to profit from the difference between an index's opening and closing prices. You can trade indices in both directions, similar to trading currency pairs, and potentially profit from rising and falling prices.

For example, if the index rises, you can open a long (buy) position. If the index falls, you can open a short (sell) position.

To trade stock indices effectively, you need to understand what influences their prices. Key factors include news (e.g., earnings reports), political issues, and the global economic situation. Technical analysis is also a valuable tool.

Learn more about trading indices with videos from FBS market experts.

You can trade indices during the main market hours of the chosen index. For US indices, trading hours are from 15:00 to 00:00 MT time. Refer to a full list of market hours for indices trading.